Medallia receives $1.8B recurring-revenue unitranche loan backing LBO

Medallia Inc. has received a $1.8 billion recurring-revenue unitranche loan and a $100 million revolver backing the acquisition of the company by Thoma Bravo, market sources said.

Blackstone Credit, funds managed by affiliates of Apollo Capital Management LP, KKR Credit, Thoma Bravo Credit and Antares Capital are the lenders. Ally provided the revolving credit facility.

Software-focused private equity firm Thoma Bravo agreed to pay $34 per share in cash to shareholders of Medallia, valuing the company at $6.4 billion. A fund affiliated with Thoma Bravo provided a $5 billion equity contribution as part of the transaction. The companies announced the deal on July 26. Medallia shareholders approved the transaction Oct. 14, and the deal closed Oct. 29.

Medallia develops and supports Medallia Experience Cloud, a software-as-a-service platform that uses artificial intelligence and machine learning technology for experience management.