Blackstone financed its buyout of Champions Group with a private credit loan of more than $1bn, according to a report by Bloomberg citing people familiar with the matter.
The financing, which includes a delayed-draw term loan, was priced at roughly 4.5 percentage points above the benchmark rate. The spread is reportedly considered near the tighter end of pricing typically seen in the private credit market.
The transaction is expected to result in leverage of around 6.5 times earnings, the people added.
In February Blackstone agreed to acquire Champions from Odyssey Investment Partners in a deal valuing the company at about $2.5bn. Champions provides residential services including furnace repair and air-conditioning maintenance, a sector viewed as less exposed to disruption from artificial intelligence.
