Software maker Medallia and dental-services provider Affordable Care are defaulting on billions in loans from lenders including Blackstone and KKR.
Lenders are negotiating to take control of Medallia from its private-equity owner, Thoma Bravo. Creditors are also restructuring a $1.4 billion loan issued to Affordable Care.
Blackstone’s largest private-credit fund, BCRED, reported that nonperforming loans rose to a record 2.4% in the first quarter. The fund cited Medallia and Affordable Care as the primary reasons for this increase.
Lenders have significantly marked down the value of these loans on their books. These high-profile defaults are intensifying investor concerns regarding the stability of the rapidly expanding private-credit market.