Carlyle, Symantec agree to reduced Veritas terms, cash by $1B
January 21, 2016
The Carlyle Group and cybersecurity provider Symantec (NASDAQ: SYMC) have amended terms for the spin-off of Symantec’s Veritas data storage unit. The new total purchase price was reduced from the $8 billion announced in August to $7.4 billion. Symantec will retain $400 million of equity in Veritas, and receive $6.6 billion in cash, $5.3 billion after tax. The company was previously taken private in a $13.5 billion 2005 merger with Symantec.
Carlyle and Symantec amended terms in the face of developing “uncertainty” in the deal, and ongoing turmoil in the debt markets created difficulties in raising $5.5 billion in junk bonds. The reported 8x leverage ratio of the deal, which is scheduled to close January 29th, is above the 6x statutory limit on bank debt from TBTF institutions.