Deutsche Bank Stuck With $1.2B Software Loans in Hung Deal

A group of banks led by Deutsche Bank AG was unable to sell about $1.2 billion of loans backing the acquisition of a software provider, leaving the lenders “hung” with the debt. Deutsche Bank told prospective creditors it would instead fund Conga Corp.’s acquisition of PROS Holdings’ B2B unit with a $625 million term loan.

The group was also due to refinance a $540 million loan maturing in 2028, but that refinancing was expected to remain outstanding. Conga is backed by private equity firm Thoma Bravo, and Conga provides document automation software for businesses.

Deutsche Bank had launched the debt with a $1.17 billion loan offering priced at a discount between 97.5 cents and 98 cents on the dollar, with an interest rate 4 percentage points over the benchmark.