According to Yahoo News, Blackstone Inc. has supplied a private credit loan package worth more than $1 billion to BeyondTrust, a cybersecurity company. The financing includes an $880 million loan, which is among the tightest levels for a US company this year, according to market participants. Direct lenders have hundreds of billions of dollars to deploy at a time when yields have broadly started dropping across debt markets, which could push yields even lower.
The main unitranche loan that Blackstone provided pays 5 percentage points over the Secured Overnight Financing Rate and was sold at 99 cents on the dollar. BeyondTrust is the latest company to use direct loans to refinance more widely held debt. The deal, which concluded in late November, also includes a delayed-draw debt and a revolving credit facility. The transaction refinances all of BeyondTrust's existing debt, namely a roughly $640 million first-lien term loan and a $242 million second lien loan.
BeyondTrust, formerly known as Bomgar, specializes in internet security and remote access software. The company is owned by leveraged buyout firm Francisco Partners, which acquired it from Thoma Bravo in a deal announced in 2018. A number of companies have recently chosen to use private credit to refinance more widely held debt, including syndicated leveraged loans. Private loans can be easier to customize and can close faster.
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