Blackstone has led a $300m private credit financing package backing Arlington Capital Partners’ take-private acquisition of UK aerospace and defence components manufacturer Gooch & Housego, according to a report by Bloomberg.
The financing comprises a unitranche loan, delayed-draw term loan and revolving credit facility, with Blackstone providing the majority of the capital. JPMorgan Chase and Jefferies also participated.
Arlington initially funded the acquisition entirely with equity before introducing the debt package.
The transaction highlights continued demand for private credit financing in leveraged buyouts, with sponsors favouring direct lenders for execution certainty and pricing despite competition from the broadly syndicated loan market.
Direct lenders have also supported several other UK take-private transactions, including the acquisitions of JTC and Hargreaves Lansdown.
The financing comes amid heightened private equity interest in UK-listed companies, which continue to trade at discounted valuations relative to US peers. Takeover activity in the UK is on course for its busiest year in more than a decade.
Aerospace and defence businesses have attracted particular interest, with Apollo Global Management acquiring EasyJet earlier this year and Arcline exploring a takeover of aerospace supplier Senior.
JPMorgan advised Arlington on the Gooch & Housego acquisition, with Kirkland & Ellis providing legal counsel. Rothschild & Co and Investec advised Gooch & Housego, while Burges Salmon served as legal adviser.
