The takeover of medical supply company Medline Industries Inc. is being funded by the largest leveraged buyout loan in three years, the latest sign of a hot U.S. market coming out of the pandemic.
The dollar tranche amounts to $6 billion, the most since Refinitiv’s $6.5 billion loan in 2018, according to data compiled by Bloomberg. If Medline completes the deal at that size, it would be the fourth-largest broadly syndicated dollar LBO loan since Bloomberg began tracking the data in 2013.
The buyout is led by private equity firms Blackstone Group Inc., Carlyle Group Inc. and Hellman & Friedman LLC.
Free Webinar: The Primary Step in Creating Value: How the Right Corporate Governance Can Drive Growth
- To what extend can the relationship between the GP and board impact the company?
- How can GPs ensure trickle down change in organisations?
- How can technology help bridge the gap between GPs and management boards?
The financing includes a leveraged loan denominated in euros (amounting to the equivalent of $1 billion) and as much as $7.8 billion in high-yield bonds expected to launch in the coming weeks.
At $6 billion, the loan will be the largest currently in the U.S. market. “Given its size and a ratings/spread combination of B2/B+ and L+350-375 bps, which looks favorable to CLOs, we expect Medline’s loan to be one of the more-liquid in the market following syndication,” Bloomberg Intelligence’s Mike Holland wrote in a report on Wednesday
Source: BNN Bloomberg
Can’t stop reading? Read more
Investcorp avoids data centres as capital crowds into AI infrastructure, says co-CEO
Investcorp avoids data centres as capital crowds into AI infrastructure, says co-CEO Investcorp is...
Investors pile into Anthropic as revenues top $9bn run rate
Investors pile into Anthropic as revenues top $9bn run rate Anthropic’s rapid revenue growth is...
BlackRock’s HPS makes first Asia private credit deal since acquisition
BlackRock’s HPS makes first Asia private credit deal since acquisition BlackRock’s private credit...