Thoma Bravo has launched a fresh effort to refinance $2.1bn of debt at cybersecurity software company Sophos, with the private equity firm facing a March 2027 maturity and growing scrutiny of its exposure to leveraged software assets, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as revealing that the technology-focused buyout firm has scheduled a lender call for Thursday to present an amendment and extension proposal, with commitments due by 22 September.
Sophos’ existing $2.1bn loan matures in March 2027, making the refinancing one of Thoma Bravo’s most pressing debt challenges. The firm has been working for months to secure an extension after several private credit investors previously declined to participate, despite being offered higher returns.
To improve the appeal of the financing, Thoma Bravo could offer lenders a package of concessions, potentially including a higher coupon, additional amortisation and tighter financial covenants.
The refinancing comes against a difficult backdrop for leveraged software borrowers. Thoma Bravo has approximately $9bn of software-related debt due over the next two years, the largest such maturity burden among its private equity peers.
Investor concerns have intensified as software companies face pressure from the rapid development of artificial intelligence, while high leverage across some portfolios has increased the focus on refinancing risk and lender protections.
Thoma Bravo’s software exposure has already produced significant challenges. Creditors took control of portfolio company Medallia earlier this year, resulting in a major loss for the private equity firm.
The sponsor also recently had to make substantial concessions to secure lender support for a roughly $4.3bn refinancing of cybersecurity company Proofpoint.
Goldman Sachs is leading the Sophos financing. Neither Thoma Bravo nor Goldman Sachs reportedly commented on the refinancing process.
