According to a Bloomberg report, Ares Management leads a group of private creditors, including Oak Hill Advisors. The group provides a debt package worth over $1.2bn for CentralSquare Technologies, which is looking to refinance their debt.
Unnamed sources familiar with the matter revealed in the report that the financing included a $1.1m term loan priced 6 percentage points higher than the Secured Overnight Finance Rate and a $125m revolving credit facility.
Bloomberg’s sources claim that the lenders will also provide $330m in preferred equity, which is expected to yield an average of 15%. This includes a payment-in kind component, which would allow the company pay some interest by using more principal instead of cash.
CentralSquare Technologies, which is backed up by Bain Capital, Visa Equity Partners and other investors, will use the capital to refinance its existing debt. This includes a $900m loan and a third lien loan of $380m.