Thoma Bravo Nears Agreement to Transfer Medallia to Lenders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Newsfilter
- Restructuring Negotiations: Private equity firm Thoma Bravo is nearing an agreement to transfer troubled software company Medallia to its lenders, concluding months of restructuring talks, which highlights the company's difficult financial situation.
- Significant Equity Loss: This move will wipe out $5.1 billion in equity for Thoma Bravo and its co-investors, reflecting a substantial loss from their $6.4 billion acquisition of Medallia in 2021, indicating a poor investment decision.
- Heavy Debt Burden: Medallia is currently struggling under $3 billion in debt owed to major creditors including Blackstone, KKR, and Apollo, showcasing its vulnerable position in a competitive market.
- Lack of Market Confidence: Both Thoma Bravo and KKR declined to comment on the matter, while Apollo and Medallia did not respond to media inquiries, suggesting a lack of confidence and interest from the market regarding this transaction.
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Analyst Views on BX
Wall Street analysts forecast BX stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 122.330
Low
166.00
Averages
176.60
High
205.00
Current: 122.330
Low
166.00
Averages
176.60
High
205.00
About BX
Blackstone Inc. is an alternative asset manager. Its asset management includes global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries, and hedge funds. Its Real Estate segment comprises its management of opportunistic real estate funds, Core+ real estate funds, and real estate debt strategies. Its Private Equity segment includes its management of flagship Corporate Private Equity funds, sector and geographically focused Corporate Private Equity funds, core private equity funds, an investment platform, and others. Its Credit & Insurance segment consists of Blackstone Credit & Insurance, which is organized into three overarching strategies: private corporate credit, liquid corporate credit and infrastructure and asset-based credit. Its Multi-Asset Investing segment is organized into four investment platforms: Absolute Return, Multi-Strategy, Total Portfolio Management, and Public Real Assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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