AI Fears Hinder Deutsche Bank’s $1.2 Billion Loan Deal for Conga

A group of lenders led by Deutsche Bank AG is at risk of getting stuck with about $1.2 billion of loans linked to the acquisition of an artificial intelligence-driven software provider, as investors shy away from businesses perceived as vulnerable to competition from free AI tools.

Deutsche Bank is struggling to generate interest in the debt, which backs Thoma Bravo portfolio company Conga’s acquisition of PROS Holdings’ B2B unit, according to people with knowledge of the situation. Talks with potential buyers this week have focused on sweetening the terms of the financing to include a cheaper issue discount and greater investor protections, said the people, who asked not to be named because the discussions are confidential.