Clearlake-backed Newfold Digital has finalised terms for a $100m financing aimed at easing pressure on its balance sheet as private equity sponsors continue to restructure highly leveraged portfolio companies, according to Bloomberg. 

The web services provider will secure the funding through a liability management transaction designed to reduce leverage and bolster liquidity. Existing lenders, including Blackstone, GoldenTree Asset Management, and Pimco, will participate in the deal.

Under the agreement, lenders have extended maturities on part of Newfold’s debt to 2029. Other obligations will be discounted, while creditors receive tighter covenants in return. The financing is priced at 5.75 percentage points over the benchmark.

Newfold has about $3.5bn of debt outstanding, equivalent to roughly six times earnings, according to people familiar with the matter. Moody’s cut the company to Caa3 in October, citing weak liquidity and an approaching maturity on its revolving credit facility.

The transaction follows months of negotiations and reflects a broader trend of private equity-backed companies using liability management to stabilise capital structures amid higher interest rates and slower operating performance.

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