Thoma Bravo is expected to relinquish control of Medallia to its lenders, according to 9fin sources, the culmination of one of the largest private credit-backed restructurings as tracked by 9fin to date.
The restructuring would wipe out billions of dollars in equity Thoma has invested in the company, after acquiring it for $6.4bn in 2021.
The total debt burden on the company is roughly $2.8bn, with some portion of interest paid-in-kind.
Blackstone holds a roughly $1.5bn position in the company’s debt, according to Bloomberg, giving the lender the largest position and consequently a leadership role in the restructuring negotiations. Other lenders to the company include Apollo, FS KKR, HPS, Monroe and Onex, according to 9fin’s BDC database.
Loan marks to Medallia have long been the linchpin of an ongoing debate regarding the reliability of manager-reported marks when discerning a company’s underlying health. In Q3 2025, Apollo listed a fair-value ratio of 77.3% while in the same reporting quarter FS KKR listed the loan ratio at 91%.
Medallia is an experience management software company that tracks data for customers and employees.
Octus and Reuters first reported some details of the transaction.
Thoma Bravo and Blackstone declined...
