BlackRock is leading a $550m private credit package to refinance debt at Syndigo, a Chicago-based software platform backed by Summit Partners and TJC, according to a report by Bloomberg.

The financing, which also includes Guggenheim Partners and 26North Partners, will repay Syndigo’s $375m first-lien loan maturing in 2027 and its $160m second-lien loan due in 2028. Jefferies, an agent on Syndigo’s existing bank debt, informed debt holders that the loans were being paid off.

Private credit has emerged as a strong competitor to banks in refinancing leveraged loans, with almost $20bn refinanced through late August, compared with $23bn replaced by banks over the same period, according to JPMorgan data. Private lenders are often able to offer more leverage and tailored structures than banks.

Syndigo, formerly known as Gladson, provides software that enables manufacturers to share product data with distributors and retailers. The company’s leverage was reported at more than seven times EBITDA as of March, climbing above nine times when certain software costs are expensed, according to Moody’s.

Summit Partners secured bank financing for its 2020 investment in Syndigo, while TJC acquired its stake in 2018.

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