Clearlake-Owned Constant Contact Premarkets $1.35B Refi via JPMorgan

Constant Contact, a Clearlake Capital-backed provider of email marketing software, is premarketing an approximately $1.35 billion all-first lien term loan refinancing via JPMorgan, according to sources.

Initial price talk is expected at SOFR+525 bps to 550 bps with 98 OID, according to sources, who cautioned that pricing has not been finalized and remains subject to change.

The transaction would refinance Constant Contact’s existing first and second lien debt with a first lien term loan, sources said. Premarketing launched on June 22, and the roughly two-week syndication process is expected to conclude after the July 4 holiday, according to one source. The new debt is expected to mature in 2031.

The offering has been shown to almost all existing lenders, the sources said, adding that broader syndication is expected to launch after the upcoming holiday. Lenders are receptive to the refinancing given the company’s recent performance and expectations that it will organically delever.

Still, risks remain over rolling holdings into a software credit given the ongoing AI-induced dislocation, noted the sources, who said they are hoping for document changes to accompany the refinancing.

The company’s debt stack is bound by a cooperation agreement, with Gibson Dunn serving as legal counsel, Octus reported in March 2025. About 95% of lenders signed the agreement in February 2025, one source said.

The company’s existing $670 million SOFR+400 bps first lien loan due February 2028 was last quoted today, June 30, at 96/97, while its $300 million SOFR+750 bps second lien loan due February 2029 was quoted at 90/94, according to Solve. A $300 million SOFR+400 bps delayed-draw term loan for the company, which also matures in 2028, was quoted at 96/97 at press time.

One of Constant Contact’s key comparables is Clearlake-backed Newfold Digital, which tapped the primary market in December with a $102 million SOFR+575 bps first lien loan due 2028, last quoted today at 80/82. Although its profitability and leverage are aligned with Constant Contact’s, Newfold’s leverage-heavy capital structure and recent debt restructuring rank it lower than peers, according to a Fitch Ratings report from earlier this year.

Constant Contact’s operating profile and liquidity are supported by its recurring subscription revenue, positive free cash flow and an undrawn revolver, according to Fitch. However, despite its strong market position as a software vendor, the credit’s exposure to the fragmented digital marketing industry could weigh on its performance.

Octus’ Private Company Analysis review of Constant Contact’s first-quarter 2026 earnings can be found HERE.

Founded in 1995 and headquartered in Waltham, Mass., Constant Contact provides email and digital marketing software to small businesses and nonprofits, offering tools for email campaigns, social media marketing, SMS, e-commerce and customer engagement, according to its website.

In the first quarter of 2026, average pricing for refinancing facilities in the information technology sector, which includes the software industry, was approximately SOFR+503.9 bps, up from SOFR+493.4 bps in the prior quarter, according to Octus’ Private Credit Dashboard.

AI-driven concerns have triggered a selloff in technology stocks and brought software refinancing activity to a standstill. Recently, cybersecurity software provider Sophos faced resistance from lenders on its $2.5 billion private credit refinancing, with several firms passing on the deal despite a significant increase in the offered yield.

Separately, Clearlake-backed analytics automation company Alteryx had floated a $2.4 billion Morgan Stanely-led leveraged loan refinancing last November, but the sponsor later opted to pause the process and revisit the deal down the line, Octus reported.

Clearlake declined to comment. Constant Contact and JPMorgan did not return requests for comment.