TSL Express Daily News

The Secured Lender

TSL-NOV24-COVR 

SFNet's 80th Annual Convention Issue
 

Intro content. Orci varius natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Curabitur iaculis sapien sagittis, accumsan magna ut, blandit massa. Quisque vehicula leo lorem, a tincidunt eros tempor nec. In quis lacus vitae risus egestas tincidunt. Phasellus nulla risus, sodales in purus non, euismod ultricies elit. Vestibulum mattis dolor non sem euismod interdum.

September 25, 2024

Source: Yahoo Finance

Blue Owl Capital Inc. led the $3.2 billion private debt financing supporting Blackstone Inc. and Vista Equity Partners’ buyout of software firm Smartsheet Inc., with 20 other lenders participating, according to a person with knowledge of the matter.

With fewer large buyouts swirling, direct lenders with record amounts of cash to deploy have had to fight for positions in club deals. Earlier this year, a record 24 lenders participated in a private credit deal for UK insurance broker The Ardonagh Group Ltd.

The Smartsheet deal included a $2.9 billion annual recurring revenue loan and a $300 million revolver, Bloomberg previously reported.

Among other notable elements of the financing, Vista and Blackstone made a number of concessions to court the large group of direct lenders, including providing protections to block liability management transactions. Blue Owl was one of the lenders that took over troubled software company Pluralsight Inc. in August, after Vista wrote off its entire equity stake in the firm.

The lenders include HPS Investment Partners, Farallon Capital Management, Elliott Capital Management, Carlyle Group Inc., Brinley Partners, GoldenTree Asset Management, Golub Capital, Monroe Capital Corp., New Mountain Capital, Ontario Teachers’ Pension Plan Board, Benefit Street Partners, AllianceBernstein Holding LP, Hercules Capital Inc., Cliffwater, Canyon Capital Advisors, Jefferies Credit Partners, Macquarie Group Ltd. and Brigade Capital Management, the person said. Blackstone’s and Vista’s credit arms also participated in the debt deal.

The deal priced at 6.5 percentage points over the Secured Overnight Financing Rate, compared to an initial ask in the range of 6.25 to 6.5 percentage points over the US benchmark, Bloomberg reported. The company would pay 7 percentage points over the benchmark if it elects to pay part of the interest in kind.

Representatives for Blackstone, Vista, Blue Owl, HPS, OTPP, Benefit Street, AllianceBernstein, Hercules Capital, Cliffwater, Carlyle, Macquarie and Farallon declined to comment. The other lenders did not immediately respond to requests for comment.