Private equity firm KKR & Co is negotiating a new senior loan with private credit lenders for portfolio company MYOB, which its intends to use to repay the Australian accounting software company’s junior debt, according to a report by Bloomberg.
The report cites people familiar with the matter in revealing that the loan is expected to have a margin in the 400 basis points-plus range. The junior tranche being repaid is valued at AUD145m ($95.7m), according to Bloomberg’s data.
The financing is part of a larger strategy to reduce the debt cost that funded KKR’s 2019 acquisition of MYOB.
In addition to MYOB’s junior debt, the company has an existing covenant-lite senior loan of approximately AUD927m, denominated in both US and Australian dollars. The new loan will supplement this existing financing and will also fund an “earnout arrangement” for MYOB’s 2022 acquisition of HR fintech Flare.
Read more:Private Equity Wire
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