Elliott Investment Management is said to have purchased about $1 billion of the junk-bond deal supporting its planned buyout of software company Citrix Systems (NASDAQ:CTXS).
Apollo Global (APO) also purchasde about $500 million of the the $4 billion bond deal, according to traders, who cited a Bloomberg report.
The update comes as banks have struggled in recent month to finance the $15 billion takeout of Citrix (CTXS) by Elliott and Vista Equity partners due to the nature of the financing markets. Several media outlets including Bloomberg earlier Wednesday reported that Wall Street banks are expected to lose about $600 million on debt backing the Citrix deal that they were forced to sell to investors at huge discounts.
The Elliott news also comes after an Apollo executive said a week ago that that he doesn’t expect banks to to start financing debt for leveraged buyouts anytime soon. Banks aren’t likely to fund large transactions until at least the fourth quarter due to the current economic uncertainty, David Sambur, co-head of private equity at Apollo told Bloomberg TV.
Citrix (CTXS) agreed in January to a $16.5 billion sale to Vista Equity and Elliott Management.