According to SaaStr, Thoma Bravo handed its Medallia acquisition to lenders in April, wiping out roughly five point one billion dollars in equity. The software company was purchased for six point four billion dollars in twenty twenty-one, but failed to deliver the returns investors expected. The deal illustrates the mechanics of PIK financing—Payment-In-Kind structures where lenders gain control when cash reserves deteriorate—and the article flags several other major software deals that could face similar pressures.

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