We advised an ad hoc group of term lenders and noteholders on the transaction

Davis Polk advised an ad hoc group of lenders and noteholders of Veritas Technologies LLC and its affiliates (collectively, “Veritas”) on a comprehensive debt recapitalization transaction of over $4 billion of Veritas’s outstanding indebtedness. The recapitalization was effectuated in connection with the spinoff and merger of Veritas’s data protection business with Cohesity. As part of the transaction, Veritas’s existing lenders and noteholders received exchange consideration consisting of a partial cash paydown, a first-lien term loan facility, another term loan facility secured by preferred equity issued by post-merger Cohesity and preferred equity issued by post-merger Cohesity. The remaining business operations of Veritas, which will be rebranded to Arctera, will be significantly deleveraged as a result.

Arctera comprises three business units: Data Compliance, Data Protection and Data Resilience. Arctera provides tens of thousands of customers worldwide, including 70% of the Fortune 100, with market-leading solutions that help them to manage their data.

Cohesity is a leading provider in AI-powered data security. Over 12,000 enterprise customers, including over 85 of the Fortune 100 and nearly 70% of the Global 500, rely on Cohesity to strengthen resilience while providing Gen AI insights into vast amounts of data.

The Davis Polk restructuring team included partners Damian S. Schaible and Adam L. Shpeen, counsel Michael Pera and associates Amber Leary and Benjamin Weissler. The finance team included partner Kenneth J. Steinberg, counsel Jon Finelli and associate Linyang Wu. The corporate team included counsel Ajay B. Lele. The capital markets team included partner Roshni Banker Cariello. The tax team included partner Corey M. Goodman and counsel Tracy L. Matlock. All members of the Davis Polk team are based in the New York office.

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