Direct Lenders Fund Thoma’s Anaplan Takeover With $2.5 Billion Loan

(Bloomberg) – Direct lenders provided $2.5 billion to fund private equity firm Thoma Bravo’s $10.7 billion purchase of software company Anaplan Inc., according to people familiar with the case.

Owl Rock Capital led the debt financing, another person with knowledge of the deal said. He was joined by Blackstone Credit, Apollo Global Management and Golub Capital.

The deal is the latest in a wave of so-called unitranche loans — which mix first- and second-tier tranches into a single credit facility — that have reached $2 billion or more.

Direct lenders eager to deploy capital as private credit market hits over $1 trillion, Preqin says, even as war in Ukraine, soaring inflation and rising interest rates cloud the economic outlook. A report by consultancy firm Baird found that 88% of industry players surveyed said the lending market was fully open despite the volatile backdrop.

Software company buyouts have been particularly attractive to private equity firms and have opened the door for direct lenders to find transaction opportunities. Holden Spaht, managing partner of Thoma Bravo, said “the space is really attractive”. In the past 12 months, the private equity firm has turned to the private credit market for a $2.6 billion loan to fund the takeover and $2.3 billion to acquire Calypso Technology.

Owl Rock, Blackstone, Apollo and Golub and Thoma Bravo declined to comment.

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