Quest Creates ‘3.5-Tier’ Loan With Second Debt Shuffle in Months

Clearlake Capital Group-backed Quest Software is shuffling the order that its creditors get repaid for the second time in three months as it launches another debt exchange to lessen its debt load.

The latest transaction will allow owners of the company’s fifth-priority paper — currently last to get paid among loan holders should the company go under — to swap into a newly created ‘3.5-out’ term loan via a below-par exchange, according to people with knowledge of the situation. It comes after the company received $350 million of fresh cash in May in adeal that pushed numerous creditors ...