Afaik the bonds are issued by the PE firms executing the deal, and it's taken many months to close. The debt has sat on bank books for a significant portion of time, so the yields are reflective of the price needed to unload them in the current market vs a market that was more conducive to the offering when the deal was initially agreed upon
PE firms don’t issue debt for leveraged buyouts. The debt is issued by the target company, ie. Citrix. Citrix is responsible for servicing the debt, not the PE firm.
Part of the way M&A activity destroys companies.
Not that anyone would miss Citrix except for their open source contributions, even if they are pared down.
Isn't this what ultimately took Toys R' Us down? The company actually had huge revenues, but after paying all it debtors could no longer actually make money.
Can you elaborate on why conditions will be good for M&A?
I’m also interested to hear why. Maybe if you are consolidating unfundable companies by force?
Good companies with decent long term prospects strapped for cash and with heavy debt will be all over the place, being bought for heavy discounts to avoid completely closing down.
And larger companies with war chests of cash will be looking for things to prop up the revenue lines.