Ares Management is leading a group of private credit firms including Oak Hill Advisors, providing a debt package of over $1.2bn to CentralSquare Technologies as the software developer looks to refinance its debt, according to a report by Bloomberg.
The report cites unnamed people familiar with the mater as revealing that the financing includes a $1.1m direct term loan that priced at 6 percentage points above the Secured Overnight Financing Rate, and a roughly $125m revolving facility.
According to a Bloomberg’s sources, the lenders are also providing $330m of preferred equity that is expected to yield about 15%, including a payment-in-kind component that would allow the company to pay some of the interest with more principal rather than cash.
The capital will be used by CentralSquare Technologies which is backed by Bain Capital and Visa Equity Partners, top refinance existing debt, including a $900m term loan and a $380m second lien loan.
