Blue Owl Capital is spearheading a private credit deal worth approximately $4bn for PCI Pharma Services, which, if finalised, would rank among the largest direct lending agreements of the year, according to a report by Bloomberg citing sources familiar with the matter.
The financing package includes a unitranche loan of about $3bn intended to refinance PCI Pharma’s current debt, the unnamed sources said. Additionally, discussions are ongoing regarding a delayed-draw term loan exceeding $1bn, though the final amount remains subject to change.
PCI Pharma’s current financial obligations include a $1.9bn leveraged loan, approximately $700m in preferred equity, and other liabilities. Pricing for the new debt is reportedly being negotiated at roughly 4.75 percentage points above the Secured Overnight Financing Rate (SOFR).
Negotiations for the transaction are still in progress, and specific details may evolve, the sources noted.
PCI Pharma Services specialises in pharmaceutical offerings such as commercial and clinical packaging. In 2020, Kohlberg & Company acquired a majority stake in the company, while Mubadala Investment Company obtained a minority interest. The deal left the prior owner, Partners Group, with a minority stake.
This transaction underscores the growing activity in the debt markets, potentially marking one of the largest private credit deals of 2025. It would also highlight the competition among direct lenders seeking opportunities in the leveraged loan sector, with the delayed-draw component introducing fresh capital into the market.
Private credit and leveraged loan providers have faced challenges over the past year, as borrowers sought to reprice existing debt at lower rates without issuing new liabilities. PCI Pharma previously tapped the leveraged loan market in May, raising approximately $1.9bn through a repricing and add-on deal at a margin of 3.25 percentage points over SOFR.
Moody’s Ratings assigns PCI Pharma a B3 credit rating, while S&P Global Ratings rates it B-, both at the lowest tier of speculative-grade debt. Unitranche loans combine senior and junior debt into a single facility, while delayed-draw loans allow borrowers to access additional funds at a later stage.
