HPS Investment Partners has led a consortium of private credit providers in a more than $3bn financing package for US-based mobile network operator Consumer Cellular, in a deal that refinances existing debt and supports a shareholder distribution to its private equity sponsor GTCR, according to a report by Bloomberg.
The deal, which comprises a $3.4bn term loan, a $200m revolving credit facility, and $525m in preferred equity, is understood to involve participation from over 10 lenders. Among them are Blackstone Credit and the Public Sector Pension Investment Board (PSP Investments), according to sources familiar with the transaction.
Proceeds from the financing will be used to refinance Consumer Cellular’s existing broadly syndicated debt and facilitate a dividend recapitalisation, as GTCR continues to return capital to investors amid a muted exit environment.
Consumer Cellular, which GTCR acquired in 2020, has seen a sharp increase in earnings over the holding period. The company generated EBITDA of $527m in the 12 months to March 2025, up from $210m in the year leading up to the acquisition, sources said.
The latest deal comes against a backdrop of rising use of private credit for dividend recaps, as sponsors face limited avenues for liquidity due to subdued M&A and IPO activity. Moody’s Ratings, which last year flagged Consumer Cellular’s “aggressive financial policy prioritising shareholder returns,” has since withdrawn its corporate ratings on the company.
GTCR previously extracted a $1.1bn dividend from the business in 2022 – exceeding both its original equity commitment and founder rollover – followed by a further $340m distribution in 2023, according to Moody’s
