Ares Management has led a group of private credit lenders in increasing financing for Veritas Capital’s acquisition of Global Healthcare Exchange, according to Bloomberg.

The lenders boosted the loan to about $1.6bn from an initial $1.3bn by using a portability clause that allows debt to transfer to a new owner without triggering a refinancing. The structure enables sponsors to avoid new underwriting fees and market risk during ownership changes.

Veritas agreed earlier this month to acquire a majority stake in Global Healthcare Exchange, joining existing shareholders Temasek and Warburg Pincus. The transaction is expected to close in the first quarter.

The loan pricing was also reduced from the original margin of 4.75 percentage points over the base rate, according to regulatory filings. Representatives for Ares and GHX declined to comment.

The deal underscores intensifying competition between private credit firms and traditional banks, as direct lenders increasingly offer flexible terms that simplify execution for private equity sponsors.

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