Jefferies Financial Group has increased the yield on a leveraged loan to IPS Corp, enabling a private-equity-backed payout to Centerbridge Partners, according to a report by Bloomberg. The proposed yield is now 4 percentage points over the benchmark rate, up from 3.75 percentage points. The $810m first-lien term loan and $100m delayed draw loan will reportedly refinance debt and cover a $180m dividend.
The adjustment is structured to facilitate liquidity for the existing sponsor, offering higher returns to the lender while supporting a distribution to the backer.
Jeffries is also using debt to support Blackstone’s investment in electrical testing firm Shermco.
