(Bloomberg) -- Golub Capital Partners is leading a lender group putting together a more than $2 billion debt package to refinance all the existing debt of software firm Aptean Inc., according to people with knowledge of the deal.

Aptean, which is owned by Charlesbank Capital Partners, Insight Partners and TA Associates, is set to receive roughly $1.7 billion in fresh financing, said the people, who declined to be identified as the details are private. The new unitranche will take out Aptean’s current debt at a higher rate but under a flexible structure, they said.

The new loan is set to be covenant-lite, according to the people, which typically means a company is not required to periodically meet certain tests of financial performance. Aptean’s current debt includes a $1.2 billion leveraged loan, a $262 million second-lien loan and a revolver maturing in 2024.

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The cov-lite structure has gained traction in the direct lending space as private credit lenders compete with the broadly syndicated loan market and it is now creeping into debt from smaller companies where covenants have become less common.

The unitranche will pay an interest of 5.5 percentage points over the Secured Overnight Financing Rate at an original issue discount of 98.5 cents on the dollar, the people added. Discussions are preliminary and details of the financing may change, they said.

Aptean’s private equity owners are also seeking to raise a $125 million revolving credit facility and a $300 million delayed draw term loan before the end of the year, the people said. 

Charlesbank Capital Partners and Golub declined to comment. Aptean, Insight Partners and TA Associates didn’t respond to requests for comment. 

Golub, the agent on the existing loan, is working on the new financing that could be sold to private credit lenders instead of the group of collateralized loan obligations vehicles that currently hold the public debt. Aptean’s first-lien debt is currently trading at par, with a below-investment-grade rating and pays an interest rate of 4.25 percentage points over SOFR, according to data compiled by Bloomberg.

Insight acquired a stake in Aptean last year. That purchase came alongside an additional investment from existing shareholder TA Associates. Aptean is a software provider for manufacturers and distributors. The company recently added transportation management capabilities through an acquisition. 

(Added context about loan, recent acquisition starting in second paragraph.)

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