Apollo Global Management Inc. has approached the banks behind the buyout financing for Citrix Systems Inc. with an offer to purchase as much as $4 billion of the debt together with other private credit funds.
Discussions with the banks are still preliminary and have so far focused on the secured portion of the $15 billion commitment, according to a person with knowledge of the matter. Ares Management Corp. and Blackstone Inc. are among the other private credit firms that have been contacted by Apollo, said the person, who asked not to be named because the talks are private.
Private credit funds, on the other hand, are flush with cash after a record year for fundraising in 2021. The expanding $1.12 trillion market has also been more resilient throughout the recent bout of volatility, allowing direct lenders to provide big loans to fund buyouts, including for software company Anaplan Inc. just last month.
Vista Equity Partners and Elliott Investment Management agreed to take private workspace software maker Citrix and combine it with Vista portfolio company Tibco Software Inc. at the end of January, before the war in Ukraine sent credit spreads wider and cooled investor appetite for risky assets broadly.
Read more: BNN Bloomberg
