KKR & Co has secured a private credit loan of approximately AUD500m ($331m) from Blackstone and Goldman Sachs Asset Management to help finance its purchase of Perpetual’s corporate trust unit, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that the financing, which is structured as a covenant-lite unitranche deal, combines senior and junior debt without financial covenants and carries an interest margin in the mid-500 basis points range.
Perpetual recently announced KKR’s agreement to purchase its wealth management and corporate trust units for AUD2.175bn. This transaction underscores the growing role of the $1.7tn global private credit market in mergers and acquisitions amid high interest rates and decreased risk appetite from traditional lenders.
KKR is also securing separate financing for the wealth management businesses, leveraging around four times their earnings.
Source:Private Equity News
Can’t stop reading? Read more
H.I.G. Capital seals back-to-back exits from Koozie and Soleo in value-driven play
H.I.G. Capital seals back-to-back exits from Koozie and Soleo in value-driven play H.I.G. Capital...
Admiral exits US insurance with sale of Elephant to J.C. Flowers & Co
Admiral exits US insurance with sale of Elephant to J.C. Flowers & Co Admiral Group has agreed...
Fopen appoints Schroders to manage €120m private equity mandate amid shift to private markets
Fopen appoints Schroders to manage €120m private equity mandate amid shift to private markets...