Blackstone Group Inc. teamed up with other lenders to provide $ 2.15 billion in financing directly Cambium Learning Group Inc.bypassing banks in one of the largest loans provided by investors.
Companies received more and more loans directly from investors without the intermediation of banks, as money managers grew eagerly awaiting the raising of the record $ 364 billion they raised to provide such financing. The Cambium deal, known as unitranche, is the third-largest new direct loan on record, according to data compiled by Bloomberg.
Blackstone spearheaded a $ 2.15 billion deal that will refinance the company’s $ 1.3 billion loan as part of a broader recapitalization that also includes $ 500 million in private debt, according to someone familiar with the matter but not authorized. speak in public. … Blackstone confirmed the size of the loan deal, which closed this month, without providing details. Three other lenders provided unified funding, an informed person said.
Representative of a private investment company Veritas Capital, which bought out the online training and testing company in 2018, declined to comment. A Cambium spokesman did not immediately respond to a request for comment.
Back in 2019, it was rare to see private loans exceeding $ 500 million. But as the private lending market expanded into a $ 1 trillion industry and banks stopped lending to midsize companies, direct lending increased. Over the past three months, the three largest new divisions have been signed – each worth more than $ 2 billion, including a record $ 2.6 billion loan to Tom Bravo redemption Stamps.com… Unitranches are loans that combine senior and subordinated debt into one line of credit.
Cambium was a frequent issuer in the leveraged loan market through banks. It increased the loan to $ 1.3 billion in March, paying a 4.5 percentage point spread over the proposed London interbank rate for the superstructure. The new debt will allow the loan to be refinanced, although pricing details were not disclosed.
The Cambium deal follows on from Blackstone’s Stamps.com loan, Ares Management Corp.., PSP Investments and the credit division Thoma Bravo.
Earlier this year, Blue owl predecessor firm Owl Rock Capital Partners, led to an investment of $ 2.3 billion to finance the buyout Calypso Technologies Inc.… by Thoma Bravo. Other lenders including Goldman Sachs Group Inc. “Private Equity Investment Platform, Thoma Bravo Credit Division and PSP Investments provided funding.