Mid-tier enterprise software providers are entering a challenging refinancing cycle as debt issued during low-interest periods matures. Higher coupon rates are curbing free cash flow and depressing private equity buyout multiples across the sector.
Debt Maturity Wall
Data shows over $45 billion in software sector corporate debt requires refinancing before Q4. Companies with elevated debt-to-EBITDA ratios are curtailing non-essential R&D to maintain service obligations.