Clearlake Capital Group has secured $5.5bn in private credit financing to back its $7.7bn acquisition of Dun & Bradstreet, marking one of the largest private credit deals to date.

Led by Ares Management, the funding package includes a $5bn term loan and a $500m revolving credit facility. The facility replaces an earlier $5.75bn bridge loan and highlights the growing dominance of direct lenders in large-cap leveraged buyouts, as traditional banks take a reduced role in marquee deals.

The term loan priced at 550 basis points over SOFR and issued at 99 cents on the dollar, reflecting robust appetite from private debt investors despite ongoing macroeconomic volatility.

The financing also drew support from a syndicate of private credit and capital markets firms including Clearlake Capital Markets, Golub Capital, and Blue Owl Capital. Morgan Stanley acted both as arranger and syndication conduit, facilitating participation from asset managers ahead of closing.

The transaction showcases private equity’s increasing reliance on private credit solutions for large-scale acquisitions. Clearlake originally used a 364-day bridge loan to secure the deal, but refinanced within 60 days, reportedly recouping up to 75% of associated fees.

Approximately $750m of the transaction will be financed through equity. Veritas Capital had previously explored a competing bid, but Clearlake ultimately secured exclusivity for the deal.

Source: Bloomberg

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