(Bloomberg) — Blackstone Corp. led a roughly $2 billion financing package for Park Place Technologies to refinance the company’s debt and pay private equity owners, according to people familiar with the matter. .
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Blue Owl Capital is also participating in the new financing, which includes about $1.7 billion in loans, a revolving credit facility and a delayed draw period loan, the people said, asking not to be identified discussing private transactions. stated.
The deal marks a victory for private credit companies over Wall Street lenders. Lenders have recently been persuading many borrowers to switch from loans they received directly from lenders to more affordable bank loans. Among the deals the direct lender secured from banks was a $1.2 billion financing package for Central Square Technologies.
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Cleveland, Ohio-based Park Place will use the proceeds from the new transaction to finance an $845 million first-lien loan originally provided by banks and syndicated to institutional investors, as well as a $230 million private placement. It will be used to refinance USD's second-lien loan, the newspaper said. people. The company's private equity owners GTCR and CharlesBank Capital Partners will also receive dividends, the people said.
Representatives for Blackstone, Blue Owl and GTCR declined to comment, while representatives for Charlesbank and Park Place did not immediately respond to requests for comment. LevFin Insights first reported several elements of the deal.
Chicago-based private equity firm GTCR acquired Park Place in 2015 and later sold its stake in the company to Boston-based Charles Bank.
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