(Bloomberg) -- A group of private credit lenders led by Blue Owl Capital Inc. and Sixth Street Partners has agreed to provide a $2.65 billion debt package to support Francisco Partners and TPG Inc.’s acquisition of New Relic Inc., according to people with knowledge of the matter.

Blackstone Inc. also participated as a lender in the deal, which is one of the largest direct-lending transactions this year, said the people, who asked not to be identified because they’re not authorized to speak publicly.

The debt package is split into a $2.4 billion term loan that pays interest of 6.75 percentage points over the Secured Overnight Financing Rate, and a $250 million revolving credit facility, according to one of the people. It was structured as a recurring-revenue loan, a type of financing that’s become increasingly common for loss-making software companies. 

Representatives for Francisco Partners, TPG, Blue Owl, Sixth Street and Blackstone declined to comment. 9fin first reported some of the financing details.

The acquisition, which was announced on Monday and is expected to close later this year or in early 2024, gives software maker New Relic an equity valuation of $6.5 billion, according to a company statement.

For buyout firms looking for large amounts of debt to back their deals, private credit has become a popular alternative to the high-yield bond and leveraged loan markets. Private credit firm HPS Investment Partners is set to provide a €1.5 billion ($1.6 billion) loan package to help fund One Rock Capital Partners’ buyout of Constantia Flexibles GmbH, Bloomberg reported Monday.

(Updates with details on lender roles and loan structure starting in first paragraph.)

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