Mar 29, 2022
Apollo-Led Group Provides TPG-Backed Firm With $1 Billion Loan
, Bloomberg News
(Bloomberg) -- An Apollo Global Management-led group has provided a $1.1 billion loan ($1.5 billion AUD) to TPG-backed Greencross Pty Limited as companies increasingly turn to direct lenders for debt financings.
The loan, which is being financed in the form of a unitranche, will be used for a recapitalization, according to a person familiar with the matter, who asked not to be identified as the transaction is private. The deal is being split between U.S. and Australian dollars, the person said.
Greencross, which was acquired by TPG in 2019, is a pet retailer and veterinary clinic operator based in Australia. Apollo led the financing with a consortium including HPS Investment Partners, Crescent Capital Group, Golub Capital, Macquarie, Owl Rock, Partners Group and MS Capital Partners.
TPG sold a 45% stake of the pet and vet business to pension funds AustralianSuper and HOOPP earlier this month, valuing the deal at $3.5 billion, according to the Australian Financial Review. TPG retained a controlling stake.
Read more: Why Unitranche Loans Grew From Niche to Billions: QuickTake
The unitranche loan, which bypasses banks, is becoming an increasingly popular way to finance debt transactions. The deal comes on the heels of a record $5.1 billion loan to SoftBank Group Corp., Bloomberg News previously reported.
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