RSA AND ITS FIRST LIEN LENDERS REACH AGREEMENT ON USE OF ARCHER SALE PROCEEDS

BEDFORD, Mass., July 14, 2023 /PRNewswire/ -- Redstone Buyer, LLC (together with its subsidiaries and affiliates party to the first-lien credit agreement, including RSA Security LLC (the "Company" or "RSA")) reached an agreement yesterday (the "Amendment") with a significant majority of its first-lien lenders on the use of net proceeds from the sale of Archer Technologies ("Archer").

While specific terms of the Amendment were not disclosed, the Amendment provides that net proceeds from the Archer sale (proceeds remaining after transaction costs, management incentive plan payments, and a permitted tax distribution) pay down first-lien debt to reduce the Company's first lien net leverage well below the first-lien net leverage multiple from the time of the original August 2021 transaction. 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.

"Today marks an exciting new chapter at RSA," said Rohit Ghai, Group CEO, at RSA Security LLC. "We are excited about this outcome, as the Amendment allows for the Company to pay down a significant portion of first-lien debt and fortifies the Company's balance sheet with additional cash to operate the business. With the Archer sale officially completed, the remaining business units at RSA will have substantial liquidity to invest in profitable growth and deliver the best quality products and services to our customers. We would like to thank our investor group, advisors, and lender group for their continued partnership and passing of the Amendment, which we believe was a positive outcome for all constituents involved."

Sidley Austin LLP provided legal counsel to RSA.

About RSA Security LLC

RSA, a leader in cybersecurity and risk management solutions, provides organizations with technology to address challenges across security, risk management and fraud prevention in the digital era. RSA solutions are designed to effectively detect and respond to advanced attacks; manage user access control; and reduce operational risk, fraud and cybercrime. RSA protects millions of users around the world and helps more than 90 percent of the Fortune 100 companies thrive and continuously adapt to transformational change.

Media Contacts

For RSA Media Contact:
Ben Lebeaux
Ben.lebeaux@rsa.com

SOURCE RSA