A group of private credit investors led by Blackstone (BX) is preparing to inject at least $100 million into Medallia as part of a restructuring that would hand control of the software company to lenders, Bloomberg reported on Thursday, citing people familiar with the matter.

The group is expected to convert a substantial portion of Medallia's existing $2.8 billion loan into equity to reduce the company's debt burden, the report said. Other lenders include Apollo Global Management and KKR.

The restructuring would wipe out roughly $5 billion of equity invested by current owner Thoma Bravo and its co-investors since the company was taken private in 2021, according to the report.

Terms of the deal are still under discussion and a final agreement could take several weeks, Bloomberg reported.

Blackstone and Medallia did not immediately respond to MT Newswires' request for comment.

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