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Morgan Stanley-Led Group Fund Loan for Software Deal

  • Term loan didn’t make it to general syndication amid shutdown
  • Deal is increased to $1 billion to make up for bigger discount
Morgan Stanley
Photographer: Michael Nagle/Bloomberg

A group of lenders led by Morgan Stanley had to use their own money to fund a $1 billion leveraged loan they had agreed to provide for Cornerstone OnDemand Inc.’s acquisition of Saba Software Inc., according to people familiar with the matter.

The loan, which was expected to be distributed to third-party investors, never launched for general syndication amid a freeze in the U.S. leveraged loan market in March due to the coronavirus pandemic, said the people with knowledge of the matter who asked not to be named because they are not authorized to speak publicly.