Vista and Elliott-backed Cloud Software seeks $2bn debt refinancing
Cloud Software Group, the enterprise software business backed by Vista Equity Partners and Elliott Investment Management, is seeking to raise $2bn through senior secured notes to refinance debt maturing in 2029, according to a report by Bloomberg.
Cloud Software Group, a software enterprise backed by Vista Equity Partners and Elliott Investment Management, is planning to raise $2 billion through senior secured notes, as per a Bloomberg report. This financing aims to refinance debt due for repayment in 2029, amid a slowdown in leveraged finance and heightened scrutiny from lenders on private equity-backed software firms.
Notably, US high-yield bond issuance dropped 18% year-on-year to $14.6 billion in October, with leveraged loan volumes declining by more than 10%. The proposed financing package includes enhanced protections against liability management transactions, indicating lenders' heightened caution regarding software companies' vulnerability to disruption from artificial intelligence.
Citigroup is spearheading the refinancing effort alongside Goldman Sachs and Vista, with pricing anticipated this week. This move comes after Cloud Software Group had already repaid an $880 million bridge loan used to finance its acquisition of data management firm Arteria.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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