Reported 4 months ago
Pluralsight Inc., backed by Vista Equity Partners, has moved assets away from private credit lenders in a strategic move to raise fresh financing. The company transferred intellectual property into a new subsidiary and utilized these assets to secure financing from Vista, weakening existing lenders' claims against the IP. This tactic, known as a 'dropdown,' is uncommon in the private credit market and has been used to pay interest to current lenders. Some lenders have sought advice on the situation, and the leveraged buyout of Pluralsight by Vista in 2021 involved around $1 billion in debt financing from direct lenders.
Source: YAHOO