Monthly Archives: September 2022

Citrix debt fix

A syndicate of banks who helped finance the Citrix Systems buyout to the tune of $15 billion have seen an oversubscription of interest among investors.The syndicate discounted the debt to around 92 cents on the dollar in response to rising interest rates. In response, investors have swarmed like bees to honey. It is not yet known whether the discount will be adjusted, or whether the syndicate will look to offload more of the debt than originally planned. Either way, it is a sign that investors still want the sugar rush of a sweet deal in leveraged finance.

inspired by REUTERS

Feeling chipper!

Brookfield Asset Management has put its chips on the table and agreed to jointly finance Intel Corporation’s semiconductor factories in Arizona to the tune of circa $30 billion. It is a sign of US chipmakers’ intent to onshore chip production in a bid to overcome global supply chain issues and follows President Biden’s introduction of the CHIPS and Science Act, providing subsidies to domestic chipmakers. The financing cost is believed to be in the 4.4% to 8.5% range. It goes to show that when the chips are down, US corporations are willing to explore new initiatives. Watch this space for further joint financing arrangements between corporate America and private capital.

inspired by REUTERS