(Bloomberg) -- Thoma Bravo is nearing a roughly $1 billion financing package from a group of private credit lenders for its planned acquisition of NextGen Healthcare Inc., according to people with knowledge of the matter.

The bulk of the financing comprises a unitranche loan that blends senior and junior debt, which is being led by Barings, the people said, asking not to be named discussing a private transaction. Ares Management Corp., Oaktree Capital Management, Oak Hill Advisors and Neuberger Berman Group are also participating in the loan, they added. 

Pricing is being discussed at 600 basis points over the Secured Overnight Financing Rate, which is slightly wider than the margin of 550 basis points over SOFR that Thoma Bravo previously pitched to direct lenders. The deal is being offered at a discounted price of 98.5 cents on the dollar, the people said. The transaction is not final and details could change, they added.

Representatives for Thoma Bravo, Barings, Ares, Oaktree, Oak Hill and Neuberger Berman declined to comment. Representatives for NextGen Healthcare didn’t immediately reply to requests for comment. 

Private credit firms now regularly compete with Wall Street investment banks to provide leveraged buyout financing. In the case of Thoma Bravo, the debt package from the group of direct lenders would help reduce the amount of equity that the company will need to put up for its acquisition of NextGen, though it isn’t required for the takeover to close, as Bloomberg previously reported.

Thoma Bravo announced its proposed acquisition of health-records software company NextGen on Sept. 6, in a deal valued at about $1.8 billion including debt. The takeover is expected to close in the fourth quarter. The transaction is not subject to a financing condition, according to the Sept. 6 announcement. 

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