Direct Lenders Finance Thoma's Anaplan Buyout With $2.5 Billion Loan – BNN

(Bloomberg) — Direct lenders provided $2.5 billion to fund private-equity firm Thoma Bravo’s $10.7 billion purchase of software company Anaplan Inc., according people familiar with the matter.

Owl Rock Capital led the debt financing, another person with knowledge of the deal said. It was joined by Blackstone Credit, Apollo Global Management and Golub Capital.

The deal is the latest in wave of so-called unitranche loans — which blend first- and second-tier tranches into a single credit facility — that have reached $2 billion or more. 

Direct lenders are eager to deploy capital with the private-credit market ballooning to more than $1 trillion in size, according to Preqin, even as the war in Ukraine, surging inflation and rising interest rates cloud the economic outlook. A report from advisory firm Baird found that 88% of the industry participants it surveyed said the lending market is fully open despite the volatile backdrop. 

Software-company takeovers have been particularly attractive for private-equity firms and have opened the door to direct lenders to source deal opportunities. Thoma Bravo managing partner Holden Spaht said the “space is really attractive.” Over the last 12 months, the private equity firm has turned to the private-credit market for a $2.6 billion loan to fund the buyout and a $2.3 billion to acquire Calypso Technology.

Owl Rock, Blackstone, Apollo and Golub and Thoma Bravo declined to comment.

©2022 Bloomberg L.P.

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