Blackstone has led a $1.5bn private credit financing package to support the merger of US accounting firms Baker Tilly and Moss Adams, according to a report by Bloomberg News citing an unnamed source familiar with the matter.
The debt package includes a $925m term loan, a $400m delayed draw term loan, and a $130, revolving credit facility. The facility supplements $1bn of previously privately placed debt.
The incremental financing is reportedly priced at 450 basis points over the benchmark rate, with the potential to tighten to 425 basis points depending on leverage levels.
The transaction supports the merger of Baker Tilly and Moss Adams – announced earlier this year – which will create the sixth-largest accounting firm in the US, valued at approximately $7bn.
In addition to the credit facility led by Blackstone, the merger has also attracted further equity investment from private equity firm Hellman & Friedman, alongside Valeas Capital Partners, both of whom are existing backers of the firm.
Blackstone and Baker Tilly declined to comment on the financing.
