Private equity-backed Cloud Software Group launched a refinancing transaction on Monday to address upcoming debt maturities. The company, formed from Vista Equity Partners and Elliott Investment Management, is offering $2 billion of senior secured notes to partially refinance debt due in 2029. The transaction arrives amid a quiet leveraged-finance market, as companies delay deals due to higher borrowing costs and the upcoming US midterm elections. Last month, junk-bond sales fell 18% year-over-year to $14.6 billion, while leveraged loan sales were more than 10% below last October's total.
Cloud Software's offering includes investor-friendly concessions such as protections against liability management exercises. Citigroup Inc. and Goldman Sachs Group Inc. are leading the refinancing alongside Vista. A lender call is scheduled for Monday with pricing expected Tuesday. Earlier this year, the group said it plans to move Arctera, a data-management business, into its restricted group that pledges collateral and backs the parent's debt. The company also repaid an $880 million bridge loan used to fund the Arctera acquisition.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing