Apollo Global Management has secured nearly $1bn in private credit financing to support its acquisition of PowerGrid Services from The Sterling Group, underscoring the rising role of direct lending in large-cap buyouts.

The deal is backed by Brookfield Asset Management, Blackstone, and JPMorgan Chase, whose lending arms are providing a $650m first-lien term loan, a $200m delayed-draw term facility, and a $125m revolving credit line. The primary loan will carry an interest rate of 475 basis points over the US benchmark, with a potential 25 basis point reduction, and a seven-year maturity. The facility is being issued at 99 cents on the dollar.

Apollo announced its agreement to acquire a majority stake in PowerGrid earlier this month. The company provides critical infrastructure services – including construction and maintenance – for electric utilities across the United States. JPMorgan served as financial adviser on the deal.

The transaction illustrates private credit’s increasing dominance in leveraged buyout financing amid a selective syndicated loan market. According to JPMorgan, direct lenders have already deployed $32bn into buyouts in 2025, up from $23bn during the same period last year, as sponsors continue to favour flexible, tailor-made financing solutions.

Source: Market Screener

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