RSA Security Cuts $400 Million Debt Cost in Distressed Exchange

A private equity-backed identity and fraud prevention security company reached a deal to revamp its debt structure, imposing severe losses on some of its existing creditors.

RSA Security, co-owned by Clearlake Capital Group and Symphony Technology Group, is embarking on a distressed exchange with total debt discounts of about $400 million, according to people familiar with the matter.

As part of the plan, the company will seek to subordinate $350 million of existing debt — held by its private equity backers — into junior paper, extend maturities and raise fresh money, said the people, who asked not to ...