Blackstone Provides $ 2.2 Billion Loan As Private Debt Reaches Record

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(Bloomberg) – Blackstone Group Inc. teamed up with other lenders to provide $ 2.15 billion in financing directly to Cambium Learning Group Inc., bypassing banks in one of the largest investor loans.

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.

A spokesman for private equity firm 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. Three major new divisions have been signed in the past three months – each worth more than $ 2 billion, including a record $ 2.6 billion loan to buy out Thoma Bravo Stamps.com. Unitranches are loans that combine senior and subordinated debt into one line of credit.

Read More: Toma Bravo Seeks $ 2.6 Billion Private Loan to Buy Stamps.com

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 a Stamps.com loan from Blackstone, Ares Management Corp., PSP Investments and Thoma Bravo’s lending arm.

Earlier this year, Blue Owl’s predecessor, Owl Rock Capital Partners, led a $ 2.3 billion division to help finance the buyout of Calypso Technologies Inc. Tom Bravo. Other lenders have also provided funding, including the private lending platform Goldman Sachs Group Inc., the lending arm of Thoma Bravo and PSP Investments.

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