A light-induced frequency shift is observed in single-photon photoassociati
ve spectra of magnetically trapped, quantum degenerate Li-7. The shift is a
manifestation of the coupling between the threshold continuum scattering s
tates and discrete bound levels in the excited-state molecular potential in
duced by the photoassociation laser. The frequency shift is observed to be
linear in the laser intensity with a measured proportionality constant that
is in good agreement with theoretical predictions. This phenomenon has imp
ortant implications for a scheme to alter the interactions between atoms in
a Bose-Einstein condensate using photoassociation resonances.