Bain Capital is arranging a roughly $3.1bn debt financing package from private credit lenders to acquire Service Logic, the US HVAC services company, from rival sponsor Leonard Green & Partners, according to a report by Bloomberg citing people familiar with the matter.
Blackstone Inc is expected to lead the unitranche loan backing the transaction, with pricing in the region of 4.5 percentage points over the US benchmark rate. Apollo Global Management Inc and KKR & Co are also participating in the debt structure.
The financing includes a step-down feature that would lower pricing to 4.25 percentage points over the benchmark rate if Service Logic reduces its debt-to-earnings ratio by half a turn from the expected closing range of 6.75x to 7x. Service Logic is reportedly the largest privately held provider of HVAC and mechanical services across the US and Canada.
