KKR has secured approximately €1.1bn in unitranche financing from a group of direct lenders to support its acquisition of Karo Healthcare, opting to bypass a traditional syndicated loan package initially arranged by a group of banks, according to a report by Bloomberg.
The private debt syndicate is being led by Apollo Global Management, which proposed an alternative to the broadly syndicated loan structure originally in place, according to sources familiar with the transaction. The lender group also includes Goldman Sachs Asset Management, CVC, JPMorgan Chase, Jefferies, and KKR’s own credit platform.
The unitranche package combines senior and junior debt tranches, with pricing set at 475 basis points over Euribor and an original issue discount of 99.5, sources added. While the spread is wider than that of traditional bank debt, the structure offers insulation from current market volatility and enables KKR to avoid the disruptions plaguing syndicated markets amid tariff-related uncertainty.
Previously, a group of underwriting banks – including Citigroup, Jefferies, BNP Paribas, HSBC, and KKR Capital Markets – had arranged a €1.275bn financing package for the Karo deal, comprising €1.1bn in term loans and €175m in undrawn facilities.
