This Week in Private Credit
Plus, Wall Street banks target more private credit deals; SunPower gets $175 million loan, and Canada's BCE Inc, secures $1.45 billion debt.
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Let’s dive into this week's fast-changing world of private credit.
Top News
Private debt funds returns beat private equity funds for the second straight quarter (Link)
Wall Street banks are keen to regain ground in debt-backed deals after giant private equity and asset management firms muscled in (Link)
Cash-strapped Hong Kong luxury property owners turn to private credit to address liquidity challenge ( Link)
Regulation and compliance are the most significant barriers to the private debt market(Link)
Deals
Telecoms
BCE Inc., the Canadian telecommunications company, has secured $1.45 billion from the US debt market to refinance its debt (Link)
Technology
State Street Partners and a group of other private credit lenders have provided Clearlake Capital and Insight Partners with $2 billion of debt for the buyout of software developer Alteryx. (Link).
KKR and a group of private credit lenders have provided a $2.775 billion loan to fund Clarience Technologies’ acquisition of Safe Fleet ( Link).
Healthcare
Blue Owl Capital, the American alternative investment asset management company, securing a $2 billion private credit package for RLDatix, the healthcare software company ( Link)
A group of leading banks have provided a $5B leveraged loan to fund KKR’s acquisition of a 50 per cent stake in Cotiviti (Link)
Bristol Myers Squibb, the global biopharmaceutical firm, has raised $13B in bond sales to fund its acquisitions of Karuna Therapeutics and RayzeBio (Link )
Consumer
Fashion retailer Express is preparing a debt restructuring of its $280million debt to avoid bankruptcy filing within weeks (Link)
Automobile
UK luxury car maker Aston Martin Lagonda is negotiating with bankers to address its company’s near-term liabilities of $1.4 billion (Link)
European battery manufacturer Automotive Cells Company has raised €4.4 billion ($4.7 billion) in debt to fund the construction of three lithium-ion battery cell factories in France, Germany, and Italy (Link)
Fundraising
Carlyle Group Inc. and Blackstone Inc. are racing to tap the trillions of dollars held by Europe’s rich investors (Link)
Siemens AG has raised €5 billion ($5.4 billion), Europe’s largest corporate bond in a year (Link)
SunPower, the rooftop solar installer, has secured a $175 million loan from Global Infrastructure Partners and TotalEnergies to address its financial pressure (Link)
Bain Capital, the global credit specialist, has announced that its Private Credit Group has invested $2 billion in middle-market and private equity-backed companies in 2023 (Link)
In the Chart
Private Credit funds as direct lenders and sources of debt financing reached $109.5 billion in 2008, according to data from PitchBook. Though less developed as an industry, it is now an acceptable form of financing for LBO with higher yields.
Readout
Will private credit trigger a new squeeze (Link)
Private credit may spur more M &As due to low fees earned, according to Jonathan Lavine, co-managing partner of Bain Capital (Link)
People
UBS Group AG has appointed Ben Sung as head of Corporate Book for Southeast Asia, leading its charge to boost private credit business in the region (Link)
A newsletter for private credit professionals. The most efficient way to keep up with private credit news, funding and trends. Have a good weekend, and we always welcome any feedback.