VERITS TL B1 1L USD 01/27/2023

Veritas Technologies LLC

Credit, TMT


Publicly traded companies mentioned herein: The Carlyle Group (CG), CommVault Systems Inc (CMVT), Symantec Corporation (SYMC)

Highlights

The presenter is long Veritas Technologies’ first lien term loan (VERITS TL B1 1L USD 01/27/2023). Veritas’s capital structure is made up of a $2.9B first lien term loan, $725MM in first lien secured notes, and $783MM in unsecured notes. They have $4.35B in total debt and ~$500MM of cash on their balance sheet. With the first lien term loan in the low-80s, investors are creating the business at 3.6x with a yield of 12.5%. If the yield moves back to 8%, investors could realize a total return of just under 20% for a security that is 2x covered through EV. 

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