Oak Hill leads $1bn private credit package for Vista’s Model N deal

May 17, 2024 | News

Oak Hill Advisors is leading a group of private credit lenders in discussions to provide about $1bn of debt to support Vista Equity Partners’ acquisition of revenue management solutions business Model N, according to a report by Bloomberg.

Vista Equity Partners revealed its plan to take Model N private in an all-cash transaction valued at about $1.25bn on 8 April.

The report cites unnamed people with knowledge of the matter in confirming that the deal is expected to close in mid-2024.

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Brinley Partners, KKR & Co, Morgan Stanley’s direct lending arm and New Mountain Capital are also participating in the financing package, which consists of a $735m loan, a $150m delayed-draw term loan and an $80m revolving credit facility, according to one Bloomberg source.

Pricing is expected at 5 percentage points over the Secured Overnight Financing Rate, at a discounted price of 99 cents on the dollar, its leverage at around eight-times based on roughly $90m of EBITDA.

Read more:Private Equity Wire

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