Key Takeaways
- • Blackstone led a $300m private credit financing package backing Arlington Capital Partners' take-private acquisition of UK aerospace and defence components manufacturer Gooch & Housego, according to Bloomberg.
- • The debt package comprises a unitranche loan, a delayed-draw term loan and a revolving credit facility, with Blackstone providing the majority of the capital and JPMorgan Chase and Jefferies also participating.
- • Arlington initially funded the buyout entirely with equity before introducing the debt, reflecting sponsors' preference for direct lenders on execution certainty and pricing over the broadly syndicated loan market.
- • The deal adds to a run of UK take-private transactions backed by direct lenders, including JTC and Hargreaves Lansdown, as UK-listed companies continue to trade at discounts to US peers and UK takeover activity is on course for its busiest year in more than a decade.
Summary
Blackstone has led a $300m private credit financing package supporting Arlington Capital Partners' take-private acquisition of Gooch & Housego, a UK manufacturer of aerospace and defence components, according to a report by Bloomberg. The financing consists of a unitranche loan, a delayed-draw term loan and a revolving credit facility, with Blackstone supplying the majority of the capital. JPMorgan Chase and Jefferies also participated in the package. Arlington originally funded the acquisition entirely with equity before bringing in the debt.
The transaction underscores continued demand for private credit in leveraged buyouts. Sponsors are favouring direct lenders for execution certainty and pricing, despite competition from the broadly syndicated loan market. Direct lenders have also supported other UK take-privates, including the acquisitions of JTC and Hargreaves Lansdown.
The financing comes amid heightened private equity interest in UK-listed companies, which continue to trade at discounted valuations relative to US peers. Takeover activity in the UK is on course for its busiest year in more than a decade. Aerospace and defence businesses have attracted particular attention, with Apollo Global Management acquiring EasyJet earlier this year and Arcline exploring a takeover of aerospace supplier Senior.
JPMorgan advised Arlington on the transaction, with Kirkland & Ellis providing legal counsel. Rothschild & Co and Investec advised Gooch & Housego, while Burges Salmon acted as legal adviser.
The transaction underscores continued demand for private credit in leveraged buyouts. Sponsors are favouring direct lenders for execution certainty and pricing, despite competition from the broadly syndicated loan market. Direct lenders have also supported other UK take-privates, including the acquisitions of JTC and Hargreaves Lansdown.
The financing comes amid heightened private equity interest in UK-listed companies, which continue to trade at discounted valuations relative to US peers. Takeover activity in the UK is on course for its busiest year in more than a decade. Aerospace and defence businesses have attracted particular attention, with Apollo Global Management acquiring EasyJet earlier this year and Arcline exploring a takeover of aerospace supplier Senior.
JPMorgan advised Arlington on the transaction, with Kirkland & Ellis providing legal counsel. Rothschild & Co and Investec advised Gooch & Housego, while Burges Salmon acted as legal adviser.
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