Sponsors Embrace Private Credit Secondary Trading as Route to Securing Supportive Lender Groups

Sponsors including Thoma Bravo are embracing private credit secondary trading to ensure they are working with lenders that have long-term conviction in their software credits, according to sources.

Thoma Bravo-backed software navigation firm Jeppesen is being offered in secondary trading activity, according to sources, with offerings for the trades indicated at about par.

Loans for Thoma-backed Anaplan and Coupa Software are also among the private credit loans trading hands between lenders, Octus reported. Both of the issuers’ debt traded between lenders earlier this year, sources added.

Private credit loan trading spiked in March and April just as business development companies, or BDCs, were poised to report earnings, according to sources.

Loans are trading hands between both existing holders as well as non-incumbent lenders looking to join the creditor group, sources said. Typically, loan trades have to be approved by the sponsor, and the sponsor can prevent new parties from entering the capital structure.

Sponsors hold veto power over any secondary trading activity, which they view as a crucial option to prevent distressed-focused credit funds or hedge funds from taking an outsized position in a credit, one source said. Such funds could be aggressive in taking ownership of the company in the event of performance issues.

While trades need sponsor approval, sources say there has been general acceptance of “assignments,” or trade agreements, across the board.

Getting ahead of refinancing risk is a primary factor leading Thoma to seek incumbent and new lenders with conviction in their assets, one source said.

On the lender side, trading activity stems from some BDCs facing liquidity pressure from redemption requests and general pressure to reduce their exposure in software assets. Performance at Jeppesen has been strong, sources added.

Jeppesen, a former division of Boeing, was acquired by Thoma Bravo in April 2025, with about eight to 10 firms providing a $4 billion unitranche to finance the $10.55 billion carve-out, as reported. Apollo and Blackstone each provided $1 billion in financing and were joined by Ares, Blue Owl, JPMorgan Private Credit, Golub, Oak Hill, PSP Investments, KKR and Thoma Bravo Credit in the package, as reported.

A list of BDCs holding Jeppesen’s term loan can be found on Octus’ BDC Database and includes BDCs owned by Oaktree, New Mountain, Goldman Sachs as well some of the aforementioned lenders. Current fair-value marks for Jeppesen’s term loan range from 98 to 100, according to the database.

An estimation of Jeppesen’s capital structure as of March 31 is below:
 

Lenders are scrutinizing large loans backing software companies due to investors’ fears around AI disruption and a broad retreat from the sector over the past six months, complicating refinancing efforts.

Cybersecurity provider Sophos, owned by Thoma Bravo, faced resistance from private credit lenders when it pursued a private credit refinancing of its $2.1 billion broadly syndicated loan, according to reports. Constant Contact, a Clearlake-owned email marketing company, is facing lender pushback as it attempts to launch a $1.35 billion refinancing of its capital structure, as reported.

Thoma Bravo declined to comment.