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October 18th - According to the latest warning notice issued by the UK Maritime Trade Operations Office (UKMTO), a maritime attack occurred in the waters northeast of Khor Faikan, UAE, on October 18th local time. A tugboat sailing south was attacked by two unidentified projectiles, resulting in damage to the hull and minor injuries to one person. The notice stated that despite the damage to the tugboat, it is continuing its planned route. Authorities are investigating the incident. Given the security risks in the area, the UK Maritime Trade Operations Office has issued a security warning to all vessels, advising them to exercise high vigilance and exercise caution when passing through the area, and to immediately report any suspicious activity to the UK Maritime Trade Operations Office.On October 18th, Woodside Energy, Australias largest natural gas exporter, stated that pre-commissioning preparations for its Scarborough gas platform, located off the coast of Western Australia, remain suspended after Greenpeace protesters boarded the platform. In a statement, Woodside said, "Greenpeaces actions have triggered significant and potentially costly responses that could have been entirely avoided." The company stated its support for a strong response from authorities, emphasizing the maximum extent possible in accordance with the law. Greenpeace stated on Sunday that protesters spent Saturday night on the Scarborough platform. The statement said two protesters had erected temporary suspended tents on the platform, while two others had returned to their ships. Greenpeace previously stated that the gas project poses a threat to marine ecosystems and will increase greenhouse gas emissions.October 18 – The Norwegian government announced on Sunday that Norway, along with other members of the European Free Trade Association (EFTA), including Iceland, Liechtenstein, and Switzerland, have signed a free trade agreement with Vietnam. In a statement, the Norwegian government said that after the agreement takes effect, approximately half of Norways exports to Vietnam will enjoy zero tariffs, and within seven years, the proportion of exports enjoying zero tariffs will exceed 98%. Vietnam and the EFTA concluded negotiations in July this year after years of talks. The two sides initially launched negotiations in 2012.US Vice President Vance: If Iran is allowed to control shipping through the Strait of Hormuz, global energy supplies will be constrained, and gasoline prices will rise. We will see gasoline prices fall after this conflict ends. The US military is ensuring the smooth passage of oil through the Strait of Hormuz.On October 18, the Saudi-led coalition stated that an AH-6I helicopter crashed in the Najran region of Saudi Arabia due to a "technical malfunction," killing both crew members. The Houthi rebels in Yemen had previously issued a statement on the evening of October 17 claiming to have shot down a Saudi Apache helicopter in the Najran region.

The awful chapter of Citrix debt is closed by banks with a $700 million loss

Aria Thomas

Sep 22, 2022 11:00

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According to a source with knowledge of the issue, Wall Street banks finalized the sale of $8.55 billion in loans and bonds funding the leveraged buyout of business software giant Citrix Systems Inc (NASDAQ:CTXS) by suffering a $700 million loss.


The process emerged as a major test of banks' ability to offload junk-rated debt from their books, a process necessary for them to recycle capital and comply with financial health requirements.


The effective completion of the syndication came at a large discount to the levels at which the banks underwrote the debt. A second person said that one of Citrix's acquirers, hedge fund Elliott Management, helped by purchasing $1 billion in bonds.


Private equity firms, who rely on junk-rated loans to increase returns on company acquisitions, have seen banks move back in the wake of Citrix and other deals that have strained their balance sheets. According to bankers, this is not expected to change in the foreseeable future, since rising interest rates and market volatility fueled by Russia's war in Ukraine have increased the probability that agreements they underwrite will appear mispriced within weeks.


According to sources, banks led by Bank of America Corp (NYSE:BAC), Credit Suisse Group AG, and Goldman Sachs Group Inc (NYSE:GS) sold a $4.55 billion Citrix loan to investors at a discount of 91 cents on the dollar and an annual interest rate 450 basis points above their benchmark.


According to the sources, a $4 billion, three-year Citrix bond was also issued for 83.6 cents on the dollar, delivering a higher than anticipated yield of 10%. Reuters reported last week that the loans in Citrix's capital structure were in strong demand, although the subordinated bonds were less popular.


Bank of America and Credit Suisse declined to comment. Goldman Sachs and Elliott did not respond to requests for comment immediately.


More debt syndication woes for banks are forthcoming. A $2 billion loan backing Apollo Global Management (NYSE:APO) Inc's acquisition of telecommunications assets from Lumen Technologies is provided at a discount of 92 cents on the dollar, while a $1.87 billion bond for the same transaction is issued at an exorbitant 10% interest rate.

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