(Bloomberg) --A group of senior lenders to Solera Holdings Inc., including Apollo Global Management Inc. and Pacific Investment Management Co., has tapped a legal adviser ahead of the software company's debt maturing in 2028, according to people familiar with the situation.
Lenders to the Vista Equity Partners-backed firm have organized with law firm White & Case for advice, said the people, who asked not to be identified discussing a private matter. The group has also signed a cooperation agreement, open to all lenders, that binds them together should the software firm want to engage in refinancing talks, the people added.
The coordination effort is the latest example of debt holders taking proactive measures in the hopes of warding off possible debt deals that could damage their holdings, such as so-called priming loans. Those loans — often used to help a company restructure its debt or fund liquidity gaps — rank the new financing higher than existing obligations.
Representatives with Vista, Apollo and Pimco declined to comment, while messages left with Solera and White & Case were not returned.
Solera is among the legions of tech companies with debt that's been hammered by an AI-fueled software selloff. Advances in artificial intelligence threaten to disrupt companies with business models that provide software subscription services. Solera's loans have since clawed back some of their losses, but are still down from the start of the year.
Its roughly $3.2 billion first-lien term loan due in 2028 is quoted at about 87 cents on the dollar, up from an all-time low of around 82.7 cents earlier in March, according to data compiled by Bloomberg, In mid-January, before a series of new AI tools shook the software sector, the loan was quoted at a 97 cents. Solera also has a $2.5 billion second-lien term loan due in 2029, the data show.
The Westlake, Texas-based company provides a range of software and services to the automotive and insurance industries, including products that help manage collision claims and register vehicle titles, according to its website.
Vista
