Thoma Bravo, which bought Sophos in 2020, has signaled it will not inject fresh capital, rebuffing investors worried about AI’s threat to software firms. The move leaves the refinancing of more than $2bn of loans entirely on the company’s own credit, with terms still under negotiation.

Sophos has been in talks with lenders to extend a $2.1bn term loan due March 2027 and a revolving facility. Several private‑credit firms passed on the deal despite a steep yield increase. The company is betting that a recent earnings update will boost its prospects.

In the three months to 30 June, Sophos reported 6% growth in annual recurring revenue versus a year earlier, and adjusted EBITDA rose 10% to about $120 m. The term‑loan recovery climbed to roughly 96.88 cents on the dollar, up from 92.69 in February. The negotiations hinge on Sophos’s ability to maintain strong cash flows and demonstrate resilience amid market volatility.

Last month, Thoma Bravo made major concessions for a $5bn refinancing of another holding, Proofpoint. This reflects a broader trend of investors scrutinizing AI-related risks in software portfolios and underscores the pressure on sponsor‑owned firms as large maturities approach and lenders reassess AI exposure.