Apollo Global Management has secured nearly $1bn in private debt financing to support its acquisition of PowerGrid Services, a US-based electric utility services provider, from The Sterling Group, according to a report by Bloomberg citing sources familiar with the matter.
The debt package is being provided by direct lending arms of Brookfield Asset Management, Blackstone, and JPMorgan Chase, and includes a $650m first-lien term loan, a $200m delayed-draw term loan facility, and a $125m revolving credit line.
Sources indicated that the primary term loan will carry an interest rate of 475 basis points over the US benchmark rate, with a potential step-down of 25 basis points over time. The facility has a seven-year tenor and is being issued at 99 cents on the dollar.
Apollo announced earlier this month that it had agreed to acquire a majority stake in PowerGrid, with JPMorgan advising on the transaction. PowerGrid Services provides critical infrastructure services including maintenance and construction for electric utilities across the United States.
The deal underscores the growing role of private credit in large-cap buyout financing, particularly amid a subdued M&A environment. According to a recent report from JPMorgan, direct lenders have deployed nearly $32bn into leveraged buyouts year-to-date, compared to $23bn over the same period in 2024.
As traditional financing avenues remain selective, private credit providers continue to capitalise on the demand for flexible, bespoke debt solutions in the sponsor-backed deal market.
