Redstone/RSA strikes agreement with lenders on use of proceeds

Chicago, July 14 – Redstone Buyer, LLC, with affiliates on its first-lien credit agreement including RSA Security LLC, reached an agreement on Thursday with its first-lien lenders on the use of proceeds from the sale of Archer Technologies, according to a press release.

The borrowers have agreed to pay down first-lien debt to reduce the company’s first-lien net leverage, after giving effect to transaction costs, management incentive pay payments and a permitted tax distribution.

The paydown will reduce the company’s net leverage “well below” the first-lien net leverage multiple from the time of the original August 2021 transaction, the company said.

Additionally, after giving effect to a dividend to investors, the amendment provides for meaningful funding to the company's balance sheet, further enhancing the overall liquidity profile of the remaining business.

Sidley Austin LLP provided legal counsel to RSA.

RSA is a Bedford, Mass.-based provider of mission critical cybersecurity software and governance risk and compliance management software solutions to enterprises.

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