Lenders push for rare repayment terms amid AI concerns about software firms

Here’s something that hasn’t happened in nearly two decades: European lenders are telling software companies they need to actually start paying back their loans on a schedule. Not at maturity. Not when they feel like it. Now. The return of amortization requirements to Europe’s leveraged finance market marks a significant shift in how creditors view the software sector. The last time these kinds of repayment terms were widespread in Europe was during the global financial crisis. The catalyst this time isn’t a banking meltdown. It’s artificial intelligence. What’s actually happening Lenders in Europe’s private credit and leveraged finance markets are increasingly demanding that software borrowers commit to gradual principal repayment over the life of their loans, rather than the bullet-maturity structures that have dominated for years. Paysafe Ltd. offers a concrete example. The payments company has proposed 5% annual repayments on its original loan principal in exchange for a two-year extension on its loan maturity. Investors are reportedly positioned to request comparable amortization terms in upcoming negotiations with think-cell Software GmbH, a company backed by private equity f...