Attachmate Said to Cancel $400 Million in Loans for Dividend
Attachmate Corp (ATTM)., a systems infrastructure software provider, canceled plans for $400 million in loans to pay a dividend to sponsors, according to a person with knowledge of the matter who declined to be identified because the deal’s private.
Credit Suisse Group AG, Royal Bank of Canada, Bank of America Corp. and Wells Fargo & Co. were arranging the debt, which included a $300 million incremental first-lien term loan due in April 2017 and a $100 million incremental second-lien term loan due October 2017, according to data compiled by Bloomberg.
Joni Kirk, a spokeswoman for Seattle-based Attachmate, declined to comment.
An investor group led by Golden Gate Capital Corp., Francisco Partners and Thoma Bravo acquired Attachmate for an undisclosed amount in June 2005, Bloomberg data show.
First-lien debt is repaid first in a bankruptcy or liquidation, second-lien debt is repaid next. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.
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