Thoma Bravo Inserts Lender Anti-Rebellion Clause In Buyout Loan

Thoma Bravo just raised the stakes in the tussle between private equity firms and their lenders, by deploying a loan provision to help smoke out creditor rebellions before they even begin.

The firm added the clause in documents tied to a $1.2 billion loan it got from private credit lenders to back the acquisition of cloud-based software provider Vitech by its portfolio company Majesco, according to people familiar with the matter. The provision requires that lenders alert Thoma Bravo within three business days of any attempts they make to coordinate with other creditors in so-called cooperation agreements, the documents viewed by Bloomberg show.