(Bloomberg) – Private finance companies are playing a major role in financing a billion more transatlantic dollars supporting the takeover of an automation software provider, in one of the most prominent examples to date of non-bank lenders stepping up their presence in banks to leverage finance.
About half of the additional arrangers of Kofax’s financing are non-banks, including PSP Investments, Antares Capital, Stone Point Capital and Brinley Partners LP.
Such a level of participation is rare. As private lenders have increasingly worked in conjunction with banks – and are considering doing so on a possible Boots Pharmacy takeover – this is one of the most prominent examples of alternative credit underwriting a title agreement. official as an arranger, alongside other banks.
The leveraged loan was launched on Monday to fund the acquisition of Kofax from Thoma Bravo, LP by Clearlake Capital Group, LP and TA Associates Management LP and includes a €300 million ($320 million) B term loan. dollars) and a $1.025 billion TLB led by JP Morgan, according to a person familiar with the matter who is not authorized to speak publicly and asked not to be identified.
Private credit companies are used to financing technology transactions, so Kofax’s financing plays to their strengths. In addition to taking out a $350 million second lien loan on the deal that also backs the takeover, non-bank lenders have already taken out about half of the $1.025 billion term loan B, a second source close to the situation that asked not to be identified said.
The full list of additional arrangers is Credit Suisse AG, UBS Securities, Jefferies, Blackstone Credit, PSP Investments, Wells Fargo Securities, Antares Capital, Security Benefit (non-bank US retirement savings), BMO Capital Markets, Goldman Sachs, KKR Capital Markets , Stone Point Capital and Brinley Partners LP.
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