A group of private credit investors including PSP Investments, Oaktree Capital Management and Franklin Templeton has acquired around $2bn of subordinated debt linked to Blackstone and TPG’s buyout of Hologic, according to a report by Bloomberg citing people familiar with the matter.
The second-lien debt forms part of a $12.25bn financing package backing the acquisition of the women’s health-focussed medical device maker. The tranche is priced at 5 percentage points over the floating-rate benchmark at 99 cents on the dollar.
Other participants include Palmer Square Capital Management, Oak Hill Advisors, Sona Asset Management, Lord Abbett and Blackstone’s credit wing.
The transaction is the latest example of banks and private lenders combining on large leveraged financings, with direct lenders taking higher-risk portions to secure yield. Recent European and US deals have followed similar structures, including CapVest Partners’ financing for Stada and transactions involving Intralot and Walgreens Boots Alliance.
