RSA Security Irks Lenders With Plans for $1.38 Billion of Cash
- Most of the Archer sale proceeds earmarked for debt paydown
- Some $400 million slated for tax distribution, riling lenders
RSA Security has riled some of its lenders over plans to use a chunk of the $1.378 billion proceeds of an asset sale to fund a tax distribution, according to people familiar with the matter.
Cyber security firm RSA, backed by Clearlake Capital Group and Symphony Technology Group, this week asked lenders permission to use $710 million of the proceeds to pay down debt. But the company also plans to distribute $400 million to limited partners of its private equity owners, a move that has sparked pushback from debtholders, according to the people, who asked not to be identified because the matter is private.