Blackstone is preparing a $2.6bn debt financing to support its plan to merge two power grid equipment suppliers, testing investor appetite for acquisition-linked credit early in the year, according to Bloomberg.

A group of banks led by Barclays is marketing the financing, which is expected to include about $2bn of first-lien debt alongside a $560m second-lien tranche, according to people familiar with the matter. The deal may launch in the leveraged loan market this month.

The proceeds will be used to recapitalise MacLean Power Systems, which Blackstone agreed to acquire in December, and merge it with Power Grid Components, a supplier it bought in 2023. Both businesses manufacture critical equipment used in electricity transmission and grid infrastructure.

Blackstone acquired MacLean through its energy transition fund and flagship private equity strategy. The combination reflects growing investor interest in power and grid assets, driven by surging electricity demand from data centres and the broader electrification of the economy.

Banks underwrote about $65bn of loans to fund mergers and acquisitions late last year and are now working to distribute that exposure to investors, as private equity-backed deals begin to re-enter the debt markets.

If you think we missed any important news, please do not hesitate to contact us at [email protected].

Can`t stop reading? Read more.