Key Takeaways
- • Private credit lenders are in discussions to provide $1.3bn in financing for L Catterton's acquisition of healthcare technology platform Fullscript, according to Bloomberg.
- • A Morgan Stanley-led banking group had underwritten the debt in the syndicated leveraged loan market at a maximum spread of 4 percentage points above the benchmark rate, but preliminary investor interest was insufficient.
- • L Catterton and co-investor Altas Partners are exploring direct lending as an alternative to syndicated financing for the buyout.
- • Apollo Global Management and Blue Owl Capital are reportedly among the lenders backing Fullscript's existing private credit debt, which carries a spread of 4.5 percentage points above the benchmark.
- • The transaction, announced in September, is expected to close on Tuesday, 10 November; financial terms were not disclosed.
Summary
A consortium of private credit lenders is in talks to provide $1.3bn of financing for L Catterton's acquisition of Fullscript, a healthcare technology platform, after the deal struggled to attract sufficient demand in the syndicated leveraged loan market, according to a report by Bloomberg, as reported by Private Equity Wire.
A banking group led by Morgan Stanley had originally underwritten the debt at a maximum spread of four percentage points above the benchmark rate. Preliminary discussions with leveraged loan investors reportedly failed to generate sufficient interest, prompting L Catterton and co-investor Altas Partners to explore direct lending alternatives.
The acquisition, announced in September, will see L Catterton and Altas acquire a majority stake in Fullscript from private equity firms HGGC and Snapdragon Capital Partners. Financial terms were not disclosed, and the transaction is expected to close on Tuesday, 10 November.
Apollo Global Management and Blue Owl Capital are reportedly among the lenders backing Fullscript's existing private credit debt, which carries a spread of 4.5 percentage points above the benchmark rate. The potential shift from syndicated lending to private credit underscores the growing role of direct lenders in financing leveraged buyouts amid volatility in traditional debt markets.
A banking group led by Morgan Stanley had originally underwritten the debt at a maximum spread of four percentage points above the benchmark rate. Preliminary discussions with leveraged loan investors reportedly failed to generate sufficient interest, prompting L Catterton and co-investor Altas Partners to explore direct lending alternatives.
The acquisition, announced in September, will see L Catterton and Altas acquire a majority stake in Fullscript from private equity firms HGGC and Snapdragon Capital Partners. Financial terms were not disclosed, and the transaction is expected to close on Tuesday, 10 November.
Apollo Global Management and Blue Owl Capital are reportedly among the lenders backing Fullscript's existing private credit debt, which carries a spread of 4.5 percentage points above the benchmark rate. The potential shift from syndicated lending to private credit underscores the growing role of direct lenders in financing leveraged buyouts amid volatility in traditional debt markets.
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