Vista Reportedly in Talks for Record-Topping $6B Private Credit Deal
Software and technology focused private investment firm Vista Equity Partners has entered discussions with private credit funds over a $6 billion deal to refinance the debt of its London-based portfolio company Finastra Group Holdings Ltd, according to Bloomberg.
The report cites unnamed sources revealing that Vista is working with Oak Hill Advisors, KKR, Sixth Street Partners and Ares Management Corp as it looks to secure the funding in what could be the largest private credit financing ever.
Finastra was acquired by Vista in 2012 and is facing more than $4 billion of nearing debt maturities. Two financing options are reportedly under consideration – a unitranche of between $5.3 billion and $5.4 billion, which would be the largest recorded deal of its type, exceeding the $5 billion secured last summer for the leveraged buyout of Zendesk.
The deal also reportedly includes a junior debt element totaling $500 million to $700 million, and a $4 billion first-lien term loan and a $2 billion second-lien term loan, which would constitute the largest private financing ever.
Private credit funds were sitting on a massive $1.4 trillion at the end of 2022 and similar deals are likely as investors search for deals traditionally funded through the high-yield bond and leveraged-loan markets.