KKR, Apollo Lead $1 Billion Private Loan for ASC Refinancing
- The private lenders competed with JPMorgan, others for mandate
- New debt arranged at 500 basis points over SOFR benchmark
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KKR & Co. and Apollo Global Management Inc. are providing a more than $1 billion direct loan to private equity-owned ASC Engineered Solutions, winning the deal over Wall Street banks, according to people with knowledge of the matter.
The debt is pricing at 5 percentage points over the Secured Overnight Financing Rate, said the people, who asked not to be identified because they’re not authorized to speak publicly. The cash will be used to refinance syndicated debt the company borrowed in 2019 that JPMorgan Chase & Co. arranged.