Gainwell Technologies, a Veritas-backed software firm, is currently in discussions to replace approximately $5.7 billion of its leveraged loans. This potential refinancing deal would represent the largest of its kind within the beleaguered U.S. software industry in the current year.
The refinancing effort by Gainwell Technologies comes at a time when other software companies are also active in the debt markets. For instance, Thoma Bravo-owned Flexera Software recently secured a $3 billion private credit package led by KKR & Co. to refinance existing debt and pay out a dividend. Additionally, cybersecurity firm Proofpoint, with an existing $5 billion term loan due in 2028, is in the market with an amend and extend deal. The new loan for Proofpoint is reportedly being offered at SOFR+ 450bps with a 2030 maturity, compared to its current SOFR+ 300bps.
Other notable refinancings include Imprivata, also backed by Thoma Bravo, which priced a $1.19 billion term loan in early July at SOFR+ 375bps to address upcoming debt. Digital identity provider Imprivata's new loan was last quoted just over par. Genealogical research site Ancestry.com also entered the market to refinance its $1.95 billion term loan due in 2027 with a new $1.750 billion term loan B due in 2031, with initial margin talk between SOFR+ 400bps to 425bps.
Meanwhile, Perforce Software Inc., backed by Clearlake Capital and Francisco Partners, recently completed a deal with junior lenders to issue $297 million of new notes maturing in 2031, allowing them to swap existing debt for the new bonds and move up in the pecking order.
