Clearlake Capital Group has lined up $5.5bn in private debt financing to support its pending acquisition of data and analytics firm Dun & Bradstreet Holdings, in what is shaping up to be one of the largest private credit transactions on record, according to sources familiar with the matter.
The financing, led by Ares Management, comprises a $5bn funded term loan and a $500m revolving credit facility, structured to replace a previously arranged $5.75bn bridge loan. The debt package underscores the growing dominance of private credit in the leveraged buyout space, as traditional banks increasingly collaborate with or defer to direct lenders on marquee transactions.
The term loan was priced at 550 basis points over SOFR, and issued at 99 cents on the dollar, reflecting strong demand from private debt investors despite ongoing macroeconomic uncertainty.
The deal also saw contributions from a consortium of private credit and capital markets firms, including Clearlake Capital Markets, Golub Capital, and Blue Owl Capital, with Morgan Stanley playing a dual role as both an arranger and conduit for broadly syndicated loan investors. In addition to underwriting part of the loan, Morgan Stanley also facilitated participation from asset managers that will enter the syndicate upon closing.
Representatives from the firms involved declined to comment.
The debt package, arranged in record time, supports Clearlake’s $7.7bn acquisition of Dun & Bradstreet, a provider of business intelligence services. The buyout was first backed by a short-term 364-day bridge loan, with Clearlake able to significantly reduce costs by refinancing within 60 days. One source noted the firm recouped around 75% of the fees originally paid to banks for securing the bridge facility.
The remainder of the transaction – approximately $750m – is expected to be funded through equity.
Veritas Capital had also expressed interest in acquiring Dun & Bradstreet earlier in the year, though Clearlake ultimately secured exclusivity.
