(Bloomberg) -- Apollo Global Management and KKR & Co. are among a group of private credit funds providing a £1.75 billion ($2.2 billion) loan to finance the buyout and planned delisting of UK money manager Hargreaves Lansdown, people with knowledge of the matter said.
Other direct-lenders involved include Blackstone Inc. and HPS Investment Partners, according to the people, who requested anonymity when discussing private matters.
They’re providing the funds to CVC Capital Partners, Nordic Capital and Platinum Ivy — a subsidiary of sovereign wealth fund Abu Dhabi Investment Authority — which jointly offered to take Hargreaves Lansdown private in a £5.4 billion deal.
The loan is structured as a unitranche, a blend of senior and subordinated debt that’s popular among private credit lenders. Pricing on the loan is 550 basis points over the reference rate, with an original issue discount at 98 pence on the pound, the people said.
Spokespeople for each firm named either declined to comment or did not immediately respond to a request for comment from Bloomberg News.
The $1.7 trillion private credit market has become a go-to funding source for take-private transactions, with the size of deals increasing as investors seek out high returns through alternative credit. Last year, direct-lenders provided a €4.5 billion ($4.9 billion) loan to back the buyout of Adevinta ASA.
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