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RxBenefits Seeks $1 Billion Private Credit Loan for Refinancing

(Bloomberg) -- RxBenefits Inc., a pharmacy benefits manager, is looking to tap private credit to refinance existing debt, according to people familiar with the matter. 

The company is seeking around $1 billion from direct lenders, said the people, who asked not to be named because the matter is private.

Pricing is being discussed at around 5.25 percentage points over the Secured Overnight Financing Rate and the deal could include a dividend, according to one of the people.

Details of the financing are preliminary and could change, or the deal may not occur at all, the people also said.

RxBenefits is backed by Advent International and Great Hill Partners. The pair announced a recapitalization of the company in 2021, valuing RxBenefits at approximately $1.1 billion. Advent and Great Hill owned equal stakes.

The company, Advent and Great Hill declined to comment for this story.

Private credit lenders have been offering competitive pricing and terms for deals as competition heats up. There have also been an increased number of dividend recapitalizations, as private equity investors seek payouts.

--With assistance from Carmen Arroyo.

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