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Blackstone Inc. is considering using securitized debt to finance its acquisition of a majority stake in Jersey Mike's, potentially valuing the company at $8 billion. Whole-business securitizations involve pledging assets like franchise fees for financing, a method popular among restaurant chains. Jersey Mike's has previously borrowed in the securitization market, with Guggenheim Securities leading the deals. [Extracted from the article]

Thoma Bravo's Quorum Software recently secured a $865 million unitranche deal with lower borrowing costs, thanks to strong demand from direct lenders. The transaction refinanced the company's existing debt at more favorable terms, including a revolving credit facility. The company's growth and financial performance have contributed to its ability to obtain attractive borrowing rates. The lender group for the deal included various prominent firms in the private credit market. The market is expected to see increased activity in 2025, following certain political developments. [Extracted from the article]

Thoma Bravo's Quorum Software recently secured a $865 million unitranche deal with lower borrowing costs due to high demand from direct lenders. The deal refinances existing debt at more favorable terms, including a 4.75 percentage point margin over the Secured Overnight Financing Rate. The company's growth, with EBITDA increasing over 10% annually, has contributed to its success. The lender group for the transaction included prominent firms like Ares Management Corp., Blackstone Inc., and Goldman Sachs Group Inc. [Extracted from the article]

The article discusses how M&A bankers are optimistic about an increase in deals under a potential second term for Donald Trump, anticipating a more business-friendly regulatory environment. Debt underwriters are also expected to benefit from the surge in deals, particularly those funded by debt. While there are challenges such as high valuations and rising borrowing costs, the market remains hopeful for increased M&A activity in sectors like technology and healthcare. The text also highlights various financial news updates and industry movements related to credit markets and corporate restructuring. [Extracted from the article]

Blackstone Inc. has raised $22 billion for a new direct lending fund aimed at institutional investors, combining elements of drawdown and evergreen funds. The fund focuses on large-cap and middle-market transactions. Blackstone's credit business, including the $62 billion Blackstone Private Credit Fund, caters to retail investors, insurance companies, and institutional asset managers. This fundraising effort has increased Blackstone's global direct lending platform to over $123 billion, contributing to the firm's $432 billion in assets under management. [Extracted from the article]

In 2024, the US leveraged loan market saw a record $986 billion in debt issuance, primarily for reducing interest expenses on existing debt. Companies focused on refinancing current obligations or securing lower margins through repricing, reflecting a market dynamic of high demand and limited new debt supply. Despite strong issuance, the market size remained around $1.4 trillion, with only 10% of volume attributed to new money transactions like buyout financing. However, there is potential for increased acquisition activity in 2025 as the Federal Reserve is expected to continue lowering interest rates. [Extracted from the article]

Banks and private credit firms are in competition to provide $5 billion in debt financing for a potential buyout of Bausch + Lomb, which could value the company at $10 billion. Private equity firms Blackstone Inc. and TPG Inc. are reportedly working on a joint bid for the eye care firm. While negotiations are ongoing, there is no guarantee that a deal will be reached. The financing deal, if successful, would be one of the largest ever arranged by private credit, amidst a challenging environment for leveraged buyouts due to higher borrowing rates. [Extracted from the article]

Banks and private credit firms are in competition to provide over $5 billion in debt financing for a potential buyout of Bausch + Lomb, which could value the company at $10 billion including debt. Private equity firms TPG Inc. and Blackstone Inc. are reportedly working on a joint bid for the eye care firm. However, there is no guarantee that a deal will be reached, as negotiations could fall through. The potential deal, if successful, would be one of the largest in recent months, amidst challenges in the leveraged buyout market due to higher borrowing rates. [Extracted from the article]

A group of banks, led by Deutsche Bank AG, has launched a $3.3 billion loan package to finance the buyout of R1 RCM Inc., a hospital billing and payment company. The package includes a $3.1 billion term loan and a $200 million delayed-draw term loan. This transaction is the second-largest leveraged loan of the year for a buyout, and it is expected to close by the end of the year. Additionally, 18 leveraged-loan transactions were launched on the same day, making it the busiest day since June 3. [Extracted from the article]

K2 Insurance Services has sold a larger-than-planned leveraged loan in order to reduce borrowing costs on buyout-related financing. The $535 million seven-year loan has a margin of 3.75 percentage points above the Secured Overnight Financing Rate. The loan is expected to fund a shareholder distribution and refinance a $440 million direct loan due in 2030. K2 is following a trend of companies using the leveraged loan market to refinance private credit debt and take advantage of lower interest rates. [Extracted from the article]

JPMorgan Chase & Co. has formed partnerships with Cliffwater, FS Investments, and Shenkman Capital Management Inc. to expand its presence in the private credit market, which is valued at $1.7 trillion. Under the agreement, JPMorgan will originate loans and invest in them alongside the direct lenders. The move comes as banks' leveraged finance desks have seen their profits decline due to the growth of the private credit market. Other banks, such as Citigroup and Wells Fargo, have also entered into similar partnerships to regain market share. JPMorgan has been working on these partnerships since late 2023 and has allocated over $10 billion for this venture. [Extracted from the article]

Top investment bankers from Goldman Sachs and Bank of America are leaving their positions to join private credit firms, signaling a shift in the financial industry. The brain drain is evidence of private capital firms' emergence as a threat to traditional banking's dominance in the corporate loan market. The allure of higher pay, more freedom, and the chance to work in a growing market are drawing bankers to the private credit sector. This trend is particularly evident in Europe, where the private capital industry is catching up with the US. [Extracted from the article]

Top investment bankers from Goldman Sachs and Bank of America are leaving their positions to join private credit firms, signaling a growing trend of bankers defecting from traditional banking to the private credit market. This brain drain is evidence of private capital firms' emergence as a threat to the traditional dominance of banking in the corporate loan market. The allure of higher pay, more freedom, and the opportunity to work in a hot market are drawing bankers to private credit. While some banks are fighting back with lower pricing and incentives, private credit's expansion is expected to continue. [Extracted from the article]

Oak Hill Advisors has provided a $775 million private credit loan to Carlyle Group Inc. to help finance its acquisition of auto parts distributor Worldpac. The loan has a pricing of 5.5 percentage points over the Secured Overnight Financing Rate. Oak Hill is in discussions to potentially sell some of the loan to limited partners. Direct lenders often provide debt financing for acquisitions made by private equity firms. Carlyle announced in August that it is acquiring Worldpac for $1.5 billion. [Extracted from the article]

Vista Equity Partners and Blackstone Inc. are seeking a $3.2 billion debt package from private credit lenders to support their proposed acquisition of software maker Smartsheet Inc. This is the first large debt-funded acquisition in the private credit arena since the US Labor Day holiday. The discussions for the debt package and the proposed acquisition are still in the early stages. Lenders may base the amount of debt a company can borrow on its earnings or recurring revenue. The private equity firms have asked for pricing of 6.25 to 6.5 percentage points over the Secured Overnight Financing Rate, with the ability to pay some of the interest with more debt. Smartsheet has a market capitalization of about $7 billion. [Extracted from the article]

J. Crew, the clothing retailer, has launched a $450 million leveraged loan to refinance its debt. The loan will be issued by Chinos Intermediate 2 LLC and is being led by Goldman Sachs Group Inc. This move comes after J. Crew filed for Chapter 11 bankruptcy in May 2020 and creditors took control of the business. The company's return to debt capital markets is significant, as it has a history of controversial debt deals and legal maneuvers. [Extracted from the article]

Citadel Securities and Jane Street Group, two major market-making firms in the US, are projected to achieve record annual revenue. Citadel Securities saw an 81% increase in net trading revenue in the first half of the year, reaching $4.9 billion, while Jane Street experienced a 78% gain, reaching $8.4 billion. Both firms have been investing in technology and talent to expand their market-making capabilities in equities and fixed-income trading globally. Citadel Securities recently entered corporate-bond trading and electronic trading of interest-rate swaps, while Jane Street has dominated the exchange-traded funds space and expanded to credit trading. [Extracted from the article]

Wells Fargo has reduced its price target on Prospect Capital Corp., a publicly traded private credit fund, due to concerns about potential dilution for existing shareholders. The price target was lowered from $5.00 to $4.50, citing the risk of a significant decline in the fund's net asset value. Prospect has faced criticism for its use of payment-in-kind arrangements, reliance on individual investors for funding, and its relationship with a real estate investment trust. During a heated earnings call, Prospect's CEO criticized a sell-side analyst's questions, while the Wells Fargo analysts highlighted the potential conversion of preferred shares into common equity as a risk for the fund. [Extracted from the article]

Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), is among the investors that lost money on Vista Equity Partners' acquisition of Pluralsight Inc. The exact size of PIF's loss is unknown. Vista acquired Pluralsight in 2021 and lost about $4 billion on the transaction following a debt restructuring. This situation has caused significant losses for limited partners, including AustralianSuper, which is writing off $750 million on Pluralsight. Co-investing, where money managers invest directly in an individual company alongside a private equity firm, can provide a way to cut back on fees and put large sums to work quickly, but it also exposes investors to potential losses. [Extracted from the article]

Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), is among the investors that lost money on Vista Equity Partners' acquisition of Pluralsight Inc. The exact size of PIF's loss is unknown. Vista acquired Pluralsight in 2021 and lost about $4 billion on the transaction following a debt restructuring. This situation has also affected other investors, such as AustralianSuper, which is writing off $750 million on Pluralsight. Co-investing, where money managers invest directly in a company alongside a private equity firm, can provide a way to cut back on fees and put large sums to work quickly, but it also exposes investors to potential losses. [Extracted from the article]

Private credit lenders, led by Blue Owl Capital Inc., are taking ownership of Pluralsight Inc., an educational-software company, in a restructuring deal that eliminates $1.2 billion of debt. The lenders will inject about $275 million of new money into Pluralsight, with the restructuring expected to be completed soon. Vista Equity Partners, which bought Pluralsight in 2021, and its co-investors are losing around $4 billion on their original equity investment. This deal highlights the increasing role of private credit funds in taking over companies facing financial challenges. [Extracted from the article]

Carlyle Group's credit unit has been struggling to catch up with its key rivals in the private credit market. While Carlyle has grown its credit business over the past seven years, it remains the smallest credit player among the five major US alternative asset managers. The firm's CEO, Harvey Schwartz, is working to ramp up the credit business and make Carlyle a bigger alternative-asset superstore. However, the firm's flagship credit fund has fallen short of its fundraising goals, and the success of the credit business will determine the clout of credit boss Mark Jenkins. Despite internal challenges and executive departures, Carlyle is continuing to expand its credit business and broaden its European presence. [Extracted from the article]

Carlyle Group's credit unit has been lagging behind its competitors in the private credit market, despite growing its credit business to $190 billion over the past seven years. The firm's CEO, Harvey Schwartz, is working to ramp up the credit business and make Carlyle a bigger alternative-asset superstore. However, Carlyle's flagship credit fund has fallen short of its fundraising goals, and the firm's credit business remains the smallest among major US alternative asset managers. Carlyle is facing challenges in catching up to its larger competitors in the credit market. [Extracted from the article]

Dwight Scott, a key figure in building Blackstone Inc.'s credit operation, is retiring from the firm. Scott joined Blackstone in 2008 through its acquisition of GSO Capital Partners and played a significant role in expanding the credit business. Last year, Blackstone consolidated various groups, including credit, under one leadership, with Gilles Dellaert taking charge. Blackstone aims to grow its total credit assets to $1 trillion within a decade. Scott's departure is seen as bittersweet, and he is credited with nurturing and expanding the business. [Extracted from the article]

Dwight Scott, who played a key role in building Blackstone Inc.'s credit operation into a $330 billion business, is retiring from the firm. Scott joined Blackstone in 2008 through its acquisition of GSO Capital Partners, an asset-management firm that helped establish its credit business. Last year, Blackstone consolidated various groups, including credit, under one leadership, with Gilles Dellaert now heading the combined unit known as Blackstone Credit and Insurance. Scott, who became chairman of BXCI, was credited by Blackstone's CEO and President for his contributions to the growth and expansion of the business. [Extracted from the article]

Silver Point Capital and a group of private credit lenders have provided an $862 million loan to support Sweet Oak's acquisition of Whole Earth Brands Inc. Sweet Oak, which already owned the Royal Oak charcoal brand, chose this direct-lending option over a leveraged loan offered by UBS Group AG. The new loan has a pricing of 5.75 percentage points over the Secured Overnight Financing Rate and will replace a previous $375 million direct lending facility. The loan will also refinance a Royal Oak leveraged loan that was repriced in 2021. [Extracted from the article]

JetBlue Airways Corp. is in talks with lenders to sell $1.5 billion of high-yield bonds that would yield about 9.5% to 10%. They are also considering a $1.25 billion leveraged loan. Demand for the bond has been strong, with orders exceeding $1.5 billion during premarketing. JetBlue has been working with banks including Barclays Plc and Goldman Sachs Group Inc. on a potential bond-and-loan offering backed by the company's loyalty program. The airline's upcoming maturities include a $750 million convertible bond due in 2026. [Extracted from the article]

JetBlue Airways Corp. is in talks with lenders to sell $1.5 billion of high-yield bonds that would yield about 9.5% to 10%. They are also considering a $1.25 billion leveraged loan. Demand for the bond has been strong, with orders exceeding $1.5 billion during premarketing. JetBlue has been working with banks including Barclays Plc and Goldman Sachs Group Inc. on a potential bond-and-loan offering backed by the company's loyalty program. The company's upcoming maturities include a $750 million convertible bond due in 2026. [Extracted from the article]

JetBlue Airways is in talks with lenders to sell $1.5 billion of high-yield bonds that would yield about 9.5% to 10%. The airline is also considering a $1.25 billion leveraged loan. Demand for the bond has been strong, with orders exceeding $1.5 billion during premarketing. JetBlue has been working with banks including Barclays and Goldman Sachs on a potential bond-and-loan offering backed by the company's loyalty program. The company's upcoming maturities include a $750 million convertible bond due in 2026. [Extracted from the article]

The recent turmoil in global markets is causing difficulties for risky US companies seeking to borrow money. SeaWorld Parks & Entertainment Inc. and SBA Communications Corp. have both postponed refinancing plans, and more deals are expected to be pulled. The risk premium on junk-rated corporate bonds has spiked, and prices on leveraged loans have dipped. This change in sentiment is due to concerns about a slowing economy and the potential for recession. Investors are withdrawing from funds that invest in leveraged loans, and the junk bond market is likely to become more challenging. If the volatility continues, borrowers may struggle to refinance and there could be an increase in distressed debt and ratings downgrades. [Extracted from the article]

Ares Management Corp. has raised nearly $34 billion for its latest direct lending fund, making it the largest dedicated pool in the private credit market. The fund, Ares Senior Direct Lending Fund III, exceeded its $10 billion target by raising about $15 billion in equity commitments. This fundraising success reflects the growing momentum in the private credit industry, with major alternative asset managers entering the market. Direct loans have become a popular source of financing for companies due to high interest rates and limited bank participation in risky loans. Ares' fund focuses on investments in North America and provides senior secured loans to companies with adjusted earnings between $10 million and $150 million. The firm expects an increase in lending activity after a slow first quarter for new mergers and acquisitions. [Extracted from the article]

Ares Management Corp. has raised nearly $34 billion for its latest direct lending fund, making it the largest fundraise ever in the private credit market. The fund, Ares Senior Direct Lending Fund III, exceeded its $10 billion target with $15 billion in equity commitments. When including leverage and separately managed accounts, the fund's total capital is more than double that amount. This fundraising success reflects the growing momentum in the $1.7 trillion private credit industry, as alternative asset managers increasingly enter this lucrative market. Direct loans have become a popular financing option for companies due to high interest rates and limited bank participation in risky loans. However, concerns have been raised about the lack of oversight in this sector. Ares has already committed over a quarter of the fund's capital to more than 165 borrowers, primarily targeting companies with adjusted earnings between $10 million and $150 million. The firm expects an increase in lending activity after a slow first quarter for new mergers and acquisitions. [Extracted from the article]

ViaPath Technologies has completed a $1.38 billion refinancing transaction after pausing the process due to new regulations from the Federal Communications Commission (FCC) that limit how much the prison-communications provider can charge for calls. The five-year loan, led by Texas Capital Bank, comes with a margin of 7.5 percentage points over the Secured Overnight Financing Rate. ViaPath lowered the discounted price to 96 cents on the dollar, making terms more favorable to lenders. The FCC's new rules reduce the cost of audio calls, impose caps on video services, and prohibit providers from making commission payments to jails and prisons. [Extracted from the article]

Apollo Global Management Inc. and a group of banks, including Bank of America Corp and Barclays Plc, are in talks to restructure a portion of Brightspeed's debt. The negotiations involve Apollo and the banks providing new financing to support the company, with the banks potentially taking a loss on their existing loans. The new financing could amount to at least $3.5 billion. These discussions have been ongoing for several months, but no agreement has been reached yet. Brightspeed's debt has been a challenge for the banks since they provided financing for Apollo's acquisition of the telecommunications assets in 2021. The situation is unique because it is the banks, rather than investment firms, that may face losses on the debt. Brightspeed has struggled as its revenue declined, and credit rating agencies have downgraded the company's credit grade. [Extracted from the article]

KKR & Co. is acquiring educational software provider Instructure Holdings Inc. with the help of a $2 billion debt package provided by a group led by Morgan Stanley. The package includes a $1.69 billion first-lien term loan, a $365 million second-lien term loan, and a $225 million revolving credit facility. Morgan Stanley, KKR's capital markets arm, and UBS Group AG are the main providers of the financing. The acquisition is valued at approximately $4.8 billion. Instructure offers software for schools and teachers to plan learning schedules and monitor student performance. [Extracted from the article]

Blackstone Inc. has hired Tyler Dickson, former global head of investment banking at Citigroup Inc., to lead client relations for its credit and insurance unit. Dickson's new role will involve overseeing the credit team that maintains relationships with insurance companies, pensions, sovereign wealth funds, and asset managers that use Blackstone for investments. This move comes as Blackstone continues to expand its lending business, with the credit and insurance segment being its fastest-growing segment, currently managing around $330 billion. Blackstone aims to grow its total credit assets to $1 trillion within a decade. [Extracted from the article]

Blackstone Inc. has hired Tyler Dickson, former global head of investment banking at Citigroup Inc., to lead client relations for its credit and insurance unit. Dickson's new role will involve overseeing the credit team that maintains relationships with insurance companies, pensions, sovereign wealth funds, and asset managers that use Blackstone for investments. This move comes as Blackstone continues to expand its lending business, with the credit and insurance segment being its fastest-growing segment, currently managing around $330 billion. Blackstone aims to grow its total credit assets to $1 trillion within a decade. [Extracted from the article]

Prison telecom provider ViaPath Technologies has put a debt deal on hold following a proposal by the Federal Communications Commission (FCC) to reduce phone and video call rates for incarcerated individuals. The company and investors are taking time to understand how the new rules could impact ViaPath's business. The FCC's proposal includes reducing the cost of audio calls, imposing new caps on video services, and prohibiting providers from making commission payments to jails and prisons. ViaPath's debt deal is crucial for refinancing existing obligations, and discussions are ongoing. [Extracted from the article]

The Federal Communications Commission (FCC) has proposed new rules to reduce phone and video call rates for incarcerated individuals, which could significantly impact prison telecom providers like ViaPath Technologies and Aventiv Technologies. The proposed rules aim to lower the cost of audio calls, establish new caps on video services, and prohibit providers from making commission payments to jails and prisons. This move comes after bipartisan legislation granted the FCC broader authority to regulate the cost of communication services for inmates. The proposed rules will be voted on by the FCC on July 18. [Extracted from the article]

ViaPath Technologies, a company that provides phone and communications services to prisoners, is in discussions to receive a $1.45 billion refinancing. The refinancing would involve a first-lien term loan led by Texas Capital Bank. The new loan would refinance the company's existing debt and has attracted enough investor demand to meet its intended size. Companies in the prison services industry have faced higher borrowing costs and narrowing options for refinancing due to increased regulatory risk and concerns over environmental, social, and governance issues. ViaPath's competitor, Aventiv Technologies, has also struggled to refinance its debt. ViaPath is committed to using technology and services to break the cycle of incarceration. [Extracted from the article]

Stifel Financial Corp. and Lord Abbett & Co. have formed a joint venture called SBLA Private Credit to focus on leveraged lending to small and mid-sized companies backed by private equity firms. The partnership aims to combine Stifel's direct lending platform with Lord Abbett's capital base. This collaboration is part of a trend among investment banks and asset managers to enter the growing $1.7 trillion private credit market. Other banks, such as Barclays and PNC Financial Services Group, have also formed similar partnerships. Direct lending competes with high-yield bonds and leveraged loans, and borrowers now consider all three options for the best terms and rates. [Extracted from the article]

Stifel Financial Corp. and Lord Abbett & Co. have formed a joint venture called SBLA Private Credit to focus on leveraged lending to small and mid-sized companies backed by private equity firms. The partnership aims to combine Stifel's direct lending platform with Lord Abbett's capital base. This collaboration is part of a trend among investment banks and asset managers to enter the growing $1.7 trillion private credit market. Other banks, such as Barclays and PNC Financial Services Group, have also formed similar partnerships. Direct lending competes with high-yield bonds and leveraged loans, and borrowers now consider all three options for the best terms and rates. [Extracted from the article]

Gopher Resource, a recycling services provider, is seeking financing from private credit lenders due to liquidity issues. The company, owned by Energy Capital Partners, has enlisted Centerview Partners to assist with the transaction. Talks are underway with direct lenders for a debt package of over $500 million to refinance Gopher's existing debt. S&P Global Ratings has downgraded Gopher's credit rating to CCC, warning of a potential liquidity crisis if the debt is not refinanced soon. Gopher must repay its revolving credit facility in August if the refinancing is not finalized by then. [Extracted from the article]

Private credit lenders, including Ares Management Corp., HPS Investment Partners, Blackstone Inc., Blue Owl Capital Inc., Sixth Street Partners, and Golub Capital, provided debt financing for Bain Capital's $5.6 billion acquisition of PowerSchool Holdings Inc. This group of lenders beat out banks that were also competing to finance the deal. The transaction is expected to close in the second half of 2024, and Vista Equity Partners and Onex Partners will retain minority investments in PowerSchool. [Extracted from the article]

Private credit lenders, including Blue Owl Capital Inc., are offering a new lending structure called a "synthetic PIK" that allows companies to make interest payments with additional borrowing without counting it as being serviced "in kind." This flexibility is in high demand as heavily indebted companies struggle to service their debt due to the Federal Reserve's policy-tightening cycle. While big banks typically cap the amount of PIK deals they will finance, synthetic PIKs provide a workaround to these constraints. This concept has been used before, particularly with tech companies, and is now being pitched in deals with more established companies. The specifics of each deal vary, and it remains to be seen if this feature will remain intact during negotiations. [Extracted from the article]