Blackstone and Ares Management are providing $3.6bn in private credit to finance Warburg Pincus’ acquisition of Park Place Technologies, one of the largest private debt packages seen this year, according to Bloomberg.

The financing comprises a $2.9bn unitranche loan, a $300m delayed-draw term loan, and a $400m revolving credit facility, priced at 4.5 percentage points above the US benchmark rate. Ares is acting as administrative agent, while Blackstone was also a key lender in Park Place’s prior $2bn debt deal.

Warburg Pincus will merge Park Place with its existing portfolio company Service Express, creating a combined entity under the Park Place Technologies name, headquartered in Cleveland. Singapore’s Temasek has taken a significant minority stake in the transaction.

The deal reflects intensifying competition among private credit lenders for large-scale buyouts, as limited transaction volumes have pushed providers to offer favourable terms, including tighter pricing and more leverage.

Blackstone and Ares’ latest deal follows a flurry of recent activity in private credit, including Apollo and Ares’ $4bn financing for Leaf Home and Blackstone’s upsized $2.7bn facility for Dropbox.

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