Thoma Bravo-backed Sophos, a UK-based cybersecurity software company, is in talks with existing lenders to refinance or extend more than US$2 billion of debt as soon as next month after efforts to secure private credit support faltered, according to people familiar with the matter.

The talks cover Sophos’ US$2.1 billion term loan due in March 2027 and a revolving credit facility.

The company could offer a higher coupon, amortization payments, and tighter covenants to win lender support, the people said.

Thoma Bravo has indicated it does not plan to inject fresh capital, they added.

Sophos was taken private by Thoma Bravo in March 2020 in a cash deal valued at about US$3.9 billion.

At the time, the Oxford-based company said it protected more than 400,000 organizations in more than 150 countries.

Some private credit firms passed on the refinancing despite Sophos reporting 6% annual recurring revenue growth for the three months ended June 30.

The company’s adjusted earnings before interest, taxes, depreciation, and amortization reached about US$120 million, while its term loan recovered to about 96.88 cents on the dollar from 92.69 in February, the people said.

🔗 Source: Bloomberg