Private lenders including Oak Hill Advisors, Blue Owl Capital, and HPS Investment Partners are providing a record-breaking $5.3bn loan package to Finastra Group Holdings Ltd, a fintech firm owned by Vista Equity Partners, according to a report by Bloomberg.
The report cites data from KBRA DLD as revealing that the financing, which comprises a $4.8bn unitranche, a blend of senior and subordinated debt, and a $500m revolver facility, is the biggest private credit loan ever in the US.
What sets Finastra’s deal apart from the previous $5bn record set by Zendesk a year ago, and other large deals including an unused $5.5bn package for Cotiviti, and a $3.4bn Galway Insurance deal, is that it is being used to refinance existing debt that the company raised in the US and European leveraged loan markets, rather than to finance buyouts.
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