Blackstone and Ares have provided approximately $5bn in private credit financing to support Thoma Bravo’s acquisition of WWEX Group and its planned merger with portfolio company Auctane, according to a report by Bloomberg citing people familiar with the matter.
The financing reportedly includes a $4.8bn unitranche loan and a revolving credit facility. The loan priced at 5.75 percentage points over the benchmark rate and was structured as covenant-lite, meaning it does not include maintenance covenants, the people said.
Blackstone acted as the largest lender on the transaction, while Ares served as administrative agent. A total of 33 lenders participated, including 26North, Blue Owl, HPS Investment Partners, Oaktree, and Goldman Sachs, among others. Some lenders were existing participants and did not all provide new capital.
The deal will combine WWEX, the logistics platform behind the Worldwide Express brand, with shipping software provider Auctane, formerly known as Stamps.com. The merged business is expected to have a valuation of $11.6bn, with pro forma EBITDA of approximately $693m and projected net revenue of $1.5bn.
First-lien leverage is expected to be around 6.9 times debt to earnings, with WWEX generating roughly $297m of EBITDA, the people said.
Under the transaction structure, WWEX’s existing shareholders will retain a 30% stake in the combined company and roll about $2.2bn of equity, while Thoma Bravo and its co-investors will own the remaining 70%.
