Ping Identity to save millions in interest from Thoma Bravo refinancing debt

Thoma Bravo is taking out a broadly syndicated loan for $1.8 billion as it looks to pay out a $1.12 billion dividend to private equity funds that supplied $1 billion in debt to the private equity firm’s acquisition of Ping Identity in 2022, unnamed source told Bloomberg.

The $2.8 billion deal to take Ping private was funded in part with a loan from a private credit consortium that included Blue Owl Capital Inc. and Sixth Street partners. Trading that billion dollar debt for equity allows them to receive payouts in the form of dividends.

Ping appears to have cash on hand, judging by its agreement to acquire Keyless for an undisclosed amount to integrate “Zero-Knowledge Biometrics” which was announced on Thursday. Ping claimed its annual recurring revenue was nearing $800 million a year ago, boosted by strong SaaS growth.

Taking out a broadly syndicated loan for $1.8 billion also allows Thoma Bravo to refinance a $792 million private credit loan.

Funding for software companies shifted significantly in the direction of private credit loans after interest rate increases drove banks towards investments seen as safer. Refinancing private loans taken out in those conditions can give businesses significantly more favorable terms.

The debt refinancing move will save Ping $10 million a year in interest, according to the report.

Thoma Bravo said when it took Ping private that enterprise digital identity security is a $50 billion market opportunity.

JPMorgan Chase & Co is leading the syndicated offering, Bloomberg says, and moved the deadline for commitments from Friday forward to Wednesday, indicating strong demand.

Article Topics

biometrics  |  digital identity  |  Ping Identity  |  Thoma Bravo