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KKR secures AUD500m private credit loan for Perpetual acquisition

KKR & Co has secured a private credit loan of approximately AUD500m ($331m) from Blackstone and Goldman Sachs Asset Management to help finance its purchase of Perpetual’s corporate trust unit, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as revealing that the financing, which is structured as a covenant-lite unitranche deal, combines senior and junior debt without financial covenants and carries an interest margin in the mid-500 basis points range.

Perpetual recently announced KKR’s agreement to purchase its wealth management and corporate trust units for AUD2.175bn. This transaction underscores the growing role of the $1.7tn global private credit market in mergers and acquisitions amid high interest rates and decreased risk appetite from traditional lenders.

KKR is also securing separate financing for the wealth management businesses, leveraging around four times their earnings.

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