(Bloomberg) -- McAfee’s former enterprise business reached a deal in principle to reshape its debt load and receive $400 million of new money, according to people with knowledge of the matter.
Elliott Investment Management and other lenders party to the deal plan to provide an immediate injection of $200 million alongside a $200 million delayed-draw loan, said the people, who asked not to identified discussing a private matter. The transaction also calls for swapping existing debt for new obligations at discounted prices, the people said.
The deal will strengthen the position of Elliott and other creditors who participate, according to the people. The new money will be backed by intellectual property assets transferred to a new unit of the company, Bloomberg previously reported.
Symphony Technology Group purchased McAfee’s enterprise business in 2021 and split it into two segments — Trellix and Skyhigh Security. A more than $3 billion loan that funded the buyout is now quoted at around 50 cents on the dollar, according to data compiled by Bloomberg.
Messages left with Trellix, Skyhigh, Symphony and Elliott were not returned.
S&P Global Ratings cut the company’s corporate rating to CCC from CCC+ last month, citing its ongoing revenue decline, budget misses and weak liquidity. In late 2022, Elliott purchased more than half of a $415 million leveraged loan that paid a dividend to Symphony.
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