Clearlake Overhauls Debt, Gets Fresh Capital for Quest Software

A deal to provide Clearlake Capital Group-backed Quest Software Inc. with $350 million of fresh capital to help fund its artificial intelligence and growth plans is coming at the expense of some lenders who will be pushed down the repayment line.

Lenders who didn’t participate in the transaction, along with other junior creditors, will be ranked lower, according to people with knowledge of the matter, who asked not to be identified discussing a private matter. That may impact what they can recoup from their investment, they added.