RSA Security Lenders Will Oppose Plans for Asset Sale Payouts

A group of first-lien lenders to cybersecurity firm RSA Security LLC has amassed a position big enough to oppose a company plan to use proceeds from an asset sale that the group says would unfairly reward equity holders, according to people with knowledge of the situation.

RSA, backed by Clearlake Capital Group and Symphony Technology Group, asked lenders last week to use more than half of the proceeds from the $1.378 billion sale to pay down debt, while distributing $400 million to limited partners of its private equity owners, Bloomberg previously reported. The planned distribution has sparked resistance from debtholders, ...