Bain Capital Credit and UBS have agreed to provide a combined A$540m, equivalent to $382m, loan to Aidacare, the Australian health-equipment manufacturer owned by Quadrant Private Equity, according to a Bloomberg report.

The six-year facility will fund a dividend payment to Quadrant and refinance existing debt, according to people familiar with the matter. The loan pays a margin of 500 basis points over the local Bank Bill Swap Bid Rate, with UBS syndicating part of its commitment to other lenders.

Australia has emerged as one of the most active private credit markets in Asia Pacific. Global alternative asset managers have expanded aggressively into the region, attracted by attractive spreads and growing deal flow. The Aidacare transaction follows other sizeable private credit financings, including a recently announced $10bn loan for Australian AI startup Firmus Technologies.

Private credit continues to command a premium over public markets. With junk bond spreads averaging below 300 basis points globally, higher-yielding private debt structures are drawing institutional capital despite their reduced liquidity.

For Quadrant, the refinancing provides capital return flexibility without requiring a sale or IPO. For Bain and UBS, it underlines the structural shift in buyout finance. Dividend recapitalisations are increasingly being funded outside traditional leveraged loan markets.

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