Blackstone, Ares provide US$3.6 billion for Park Place buyout
More deals have cropped up in recent weeks, as merger and acquisition volume has ticked up
[NEW YORK] Lenders, including Blackstone and Ares Management, are providing roughly US$3.6 billion of private debt to help finance Warburg Pincus’ acquisition of Park Place Technologies, according to sources with knowledge of the matter.
The private equity firm is merging Park Place, a data centre services firm, with its existing portfolio company Service Express, according to a statement on Wednesday (Sep 10).
The debt deal includes US$2.9 billion unitranche loan, a US$300 million delayed-draw term loan and a US$400 million revolving credit facility, said the sources, who asked not to be identified discussing private information. The deal priced at 4.5 percentage points over the US benchmark rate, the sources also said.
Ares serves as the administrative agent on the deal. Blackstone was a large lender on the company’s previous debt.
Representatives for Warburg Pincus, Blackstone, Ares, Park Place and Temasek declined to comment.
The combined company will be called Park Place Technologies and will remain headquartered in Cleveland. Temasek took a significant minority investment as part of the acquisition, according to the statement.
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In 2024, Park Place obtained a roughly US$2 billion debt package from lenders including Blackstone and Blue Owl Capital to refinance debt and fund a payout to its private equity owners, Bloomberg reported at the time.
Buyouts by private equity firms have been few and far between, leaving broadly syndicated and private credit lenders in tight competition for the rare deals that have come to market. That’s allowed borrowers to snag friendly terms, including tighter pricing and more leverage.
More deals have cropped up in recent weeks, as merger and acquisition volume has ticked up.
Blackstone recently upsized its loan to Dropbox, while a group of private credit lenders led by BlackRock are set to refinance Syndigo’s bank debt. Apollo Global Management and Ares also recently provided a US$4 billion deal to Leaf Home to help refinance debt and pay for an acquisition. BLOOMBERG
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