Brookfield Corp is seeking a AUD750m ($525m) loan for its Australian non-bank lender La Trobe Financial, aimed at funding a shareholder distribution while also refinancing existing debt, according to a report by Bloomberg citing unnamed people familiar with the matter.
The proposed financing is structured as a five-year AUD700m term loan alongside a AUD50m revolving credit facility. Morgan Stanley and UBS are understood to be arranging the deal, which is being marketed as a covenant-lite term loan B, offering greater flexibility and reduced lender oversight.
Pricing on the facility is reported at a margin of 475 basis points over the Bank Bill Swap Yield benchmark.
The transaction reflects a broader trend in private markets, where sponsors increasingly use dividend recapitalisations—raising additional debt at portfolio companies to fund investor payouts—particularly when exits via sale or IPO are less viable.
Brookfield’s new facility is expected to refinance an existing AUD540m debt package due next year. The move comes amid continued pressure on private equity-style returns, with managers across Asia-Pacific and globally turning to debt-funded distributions to return capital to investors.
The firm previously sold a minority stake in La Trobe Financial at a $2.1bn valuation and has faced volatility across parts of its credit and infrastructure portfolio, underscoring the mixed performance backdrop for alternative asset managers.
