(Bloomberg) -- Thryv Holdings Inc., the software company that owns the Yellow Pages, has held discussions with private credit lenders for $350 million in funding to refinance its existing debt, according to people familiar with the matter.

The Dallas-based company is looking to refinance its broadly syndicated debt, which matures in December 2026. Citizens Bank is advising on the transaction, the people said.

Thryv has paid down significant portions of its debt as a result of mandatory amortization payments of $17.5 million per quarter, bringing total borrowings down to $300 million from $700 million, according to a filing. What remains of the debt is expensive, requiring interest payments of 8.5 percentage points over the Secured Overnight Financing Rate, the filing shows.

Some lenders have proposed using some form of junior capital in the financing, according to the people. However, the company is focused on an all-senior solution, according to a person with knowledge of its thinking. Thryv currently has a senior facility, as well as a revolver and asset-backed loan.

“In our fourth quarter 2023 earnings call, we publicly stated our intention to explore refinancing options for our outstanding credit facility to proactively address the maturity date in 2026,” Cameron Lessard, Thryv’s assistant vice president of treasury, corporate development and investor relations, said in response to a request for comment.

A representative for Citizens Bank declined to comment.

In February, Moody’s Ratings raised Thryv’s outlook to positive from stable, as the company has worked to grow its scale and profitability, while continuing to pay down debt. Its corporate family rating is still at B3, Moody’s said in its report. 

At the end of the fourth quarter, Thryv reported consolidated adjusted earnings before interest, taxes, depreciation and amortization of $52.3 million, down from $68.2 million in the same period last year. 

(Updates with more detail on the potential financing in fourth paragraph.)

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