KKR-owned cybersecurity firm Optiv has entered private negotiations with some of its junior lenders as it faces a looming debt maturity wall next year, according to people familiar with the matter cited by Bloomberg.

The discussions involve holders of Optiv’s second-lien loans and come as the company struggles with about $1bn in total debt, more than half of which is due in 2026, including a $650m term loan.

Ratings agency S&P Global downgraded Optiv in June from CCC+ to CCC, citing weak operating performance and high leverage. The firm has also opted to pay interest on its second-lien obligations with additional debt instead of cash, signalling growing liquidity pressures.

The mounting concerns have weighed on Optiv’s debt trading levels, with its term loan quoted at 76 cents on the dollar as of early November, down from just over 82 cents in August, according to Bloomberg data.

Optiv, based in Denver, provides cybersecurity, cloud security, and risk management solutions to enterprises globally. The company was acquired by private equity firm KKR in 2017 as part of its broader strategy to expand into digital infrastructure and security.

Neither KKR nor Optiv provided comment on the ongoing lender discussions.

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