Warburg Pincus’ acquisition of data centre services provider Park Place Technologies has been backed by a $3.6bn private credit package led by Blackstone and Ares Management, underscoring the growing role of direct lenders in large-cap private equity deals, according to a report by Bloomberg.
The financing includes a $2.9bn unitranche loan, a $300m delayed-draw term loan, and a $400m revolving credit facility, according to people familiar with the matter. The debt, priced at 450 basis points over the US benchmark rate, will support Warburg’s merger of Park Place with its existing portfolio company Service Express.
Ares is acting as administrative agent on the financing, while Blackstone was among the largest lenders on Park Place’s previous debt package. Temasek has also taken a significant minority stake in the newly combined business, which will retain the Park Place name and remain headquartered in Cleveland.
The deal comes amid fierce competition between private credit providers and the broadly syndicated loan market, as large buyouts remain scarce. Sponsors and borrowers have been able to take advantage of this environment to secure borrower-friendly terms, including higher leverage and tighter pricing.
Warburg Pincus’ latest move follows Park Place’s $2bn refinancing in 2024, which was also led by Blackstone and Blue Owl Capital.
