Story · PE·
Private equity wants a debt escape clause for AI disruption in LBO loans
Bloomberg reports that H.I.G. Capital got force majeure style AI disruption language into the EUR 470 million loan backing its majority stake in German engineering firm Terras Group. If AI hurts the business, lenders' remedies are suspended for as long as the impact lasts, though interest is still owed, and the documents also let H.I.G. adjust EBITDA for AI. The language has shown up in at least two LBO financings since September, and lenders got it struck from Bain Capital's EUR 4.7 billion Everllence loan.
Sponsors are now negotiating AI disruption as a credit risk in deal documents, which matters to private credit lenders, LPs in credit funds and any PE firm pricing AI exposure in its portfolio.
Source
Read at Bloomberg via Moneycontrol ↗Bloomberg Law ↗
Bloomberg via Moneycontrol · moneycontrol.com · Found in the news · source checked Oct 28, 2026
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