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.
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
Can’t stop reading? Read more
Blackstone taps bond market as private credit BDCs end issuance drought
Blackstone taps bond market as private credit BDCs end issuance drought Blackstone's private...
EQT raises the stakes with revised $12.3bn bid for Intertek
EQT raises the stakes with revised $12.3bn bid for Intertek EQT has tabled an improved takeover...
Temasek’s Azalea bets on evergreen structure to democratise private equity access
Temasek's Azalea bets on evergreen structure to democratise private equity access Azalea, a unit...