Covenants by Reorg: Citrix LBO Notes Include Aggressive Buildup Basket

Americas Covenants by Reorg’s review of coverage for the week ended Friday, Sept. 16, is below.

This week, Americas Covenants by Reorg discussed the new secured notes issued in connection with the leveraged buyout of Citrix Systems and analyzed the aggressive restrictive payments buildup basket based on 100% of cumulative EBITDA.

We also discussed NortonLifeLock’s credit agreement entered in connection with the acquisition of Avast. Although the agreement does not provide the company with excessive flexibility, it does include a mechanic that expands borrowers’ ability to carry forward unused annual capacities to the mandatory prepayment provisions. We also analyzed StoneMor’s related party transactions with Axar from a covenants perspective to identify the issues likely raised by the bondholders regarding disclosures included in Item 13 of StoneMor’s 10-K.

In the secondary markets, we initiated coverage on Opendoor Technologies, a property technology company that provides residential real estate services and LendingTree, an online marketplace operator where potential borrowers can connect with multiple loan operators. We have also updated our coverage of Hersha Hospitality and Ultra Clean Holdings. We also prepared an updated covenants tear sheet for Sylvamo based on June 30 financials and analyzed its ability to consummate a recently announced asset acquisition.

In the primary markets, we prepared comprehensive reports on CNX Resources’ $500 million offering of senior unsecured notes due 2031.

This Week Americas Covenants by Reorg Covered:

1. Audacy Inc.
2. Avaya Inc.
3. Bausch Health Companies
4. Carnival Corporation & plc
5. Citrix Systems Inc
6. CNX Resources
7. Community Health Systems
8. Hersha Hospitality Trust
9. Lannett Co. Inc
10. LendingTree Inc
11. NortonLifeLock
12. Opendoor Technologies
13. Party City Holdco Inc.
14. Rackspace Technology Inc.
15. StoneMor Inc.
16. Ultra Clean Holdings.

If you would like to request an Americas Covenants analysis of any new loan or bond offering, please submit the offering materials to us at CovenantLoanReport@reorg-research.com.