Silver Lake Administration has lined up as a lot as $8.5 billion of debt financing for its buyout of Endeavor Group Holdings Inc., the expertise company and controlling investor in WWE and the Final Combating Championship.
JPMorgan Chase & Co. is main underwriters on a portion of the financing structured as a leveraged mortgage, in line with individuals with data of the matter. The make-up and quantity of debt may nonetheless change, mentioned the individuals, who requested to not be named as a result of they’re not approved to talk publicly.
amid a dearth of leveraged buyouts and acquisitions. Demand for brand new paper from traders is excessive because the mortgage market tightens to ranges not seen since 2022.
Silver Lake and JPMorgan declined to remark, whereas Endeavor didn’t reply to a request searching for remark.
Goldman Sachs Group Inc., JPMorgan, Morgan Stanley, Bank of America Corp., Barclays Plc, Deutsche Bank AG and Royal Bank of Canada acted as lead financing arrangers and lead monetary advisers to Silver Lake, in line with a press release. LevFin Insights earlier reported some particulars of the financing.
The largest acquisition deal within the leveraged mortgage market this yr included round $5 billion of loans in February for KKR & Co.’s buy of a stake in Cotiviti Inc. That deal marked a key victory for Wall Avenue banks over non-public credit score lenders.
Banks and direct lenders are going toe-to-toe to finance offers such because the buyout of Sanofi’s client well being division and the potential buyout of Apleona Group GmbH. Direct lending corporations led by Ares Management Corp. and Blue Owl Capital Inc. are set to provide roughly $4.8 billion of debt financing for the acquisition of prescription drugs producer Catalent Inc.
Endeavor Group agreed to be acquired in a $13 billion buyout by Silver Lake earlier this month. The transaction is predicted to shut by the tip of the primary quarter of 2025.
