Aug. 5 at 8:48 PM
Ares Management is leading a
$2.2 billion direct loan to finance MedImpact Holdings' planned acquisition of Puerto Rico-based healthcare services company Medical Card System, according to Bloomberg. The transaction would rank among the largest private credit deals since the sector experienced record investor withdrawals earlier this year, underscoring the resilience of the direct lending market despite tighter financing conditions and slower capital inflows.
The financing is expected to be structured as a second-lien loan, with pricing of at least 8 percentage points above the benchmark rate, reflecting the higher risk of junior debt because lenders would rank behind first-lien creditors in the event of a default. The deal also highlights the growing role of private credit firms in financing large leveraged buyouts as traditional banks remain more selective with underwriting sizable acquisitions.
$ARES