Apollo Global Management and Silver Point Capital have led a $900m direct loan to Vantage Specialty Chemicals, marking another shift from bank-arranged financing into the private credit market, according to sources cited by Bloomberg.

Oak Hill Advisors also contributed to the transaction, which refinances Vantage’s senior secured term loan and revolving credit facility. Vantage, based in Illinois, is owned by H.I.G. Capital, which created the business in 2008 through a carveout, sold it in 2012, and repurchased it in 2017.

The deal highlights the growing trend of companies turning to private credit over traditional bank-led lending, attracted by greater flexibility and fewer disclosure requirements. Buyout firms have increasingly favoured this route for portfolio companies facing volatile credit markets.

Following the refinancing, Fitch Ratings withdrew its B- grade for Vantage, having previously downgraded the chemicals manufacturer in June on concerns over liquidity pressures and weaker earnings expectations.

The deal adds to a wave of large private credit financings. Blue Owl Capital and Oak Hill Advisors recently led a $1bn refinancing for Wrench Group, while BlackRock arranged a similar transaction for Syndigo.

Apollo’s involvement reinforces its position as a leading force in private credit, further underscoring the asset class’s growing role in private equity-backed transactions.

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