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
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