A syndicate of private credit lenders has agreed to convert a portion of their debt in International Data Group (IDG) into equity, in a move aimed at stabilising the Blackstone-backed company amid a challenging high-rate environment, according to a report by Bloomberg.
The deal, finalised last week, marks one of the latest high-profile restructurings in the $1.6tn private credit market. It involves several major players including Goldman Sachs Asset Management, Oak Hill Advisors, Cliffwater, Jefferies Financial Group, and Blackstone Credit, all of whom helped finance Blackstone’s $1.3bn acquisition of IDG in 2021 with a $1bn private debt package.
Under the terms of the restructuring, lenders have agreed to convert part of the loan into equity, effectively recapitalising the business to extend its financial runway. Additionally, a portion of the remaining debt has been amended to include payment-in-kind (PIK) interest features, giving IDG further flexibility by deferring cash interest payments.
The move comes as private equity sponsors and their credit partners face increasing pressure to manage portfolio companies challenged by elevated borrowing costs and tightening liquidity.
Neither Blackstone nor the involved lenders commented on the transaction. IDG and Jefferies also declined to respond.
