Private Credit Provides Debt for Bain’s PowerSchool Buyout

(Bloomberg) -- A group of private credit lenders provided debt financing for Bain Capital’s $5.6 billion acquisition of PowerSchool Holdings Inc., beating out banks that had also competed to finance the deal.

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Ares Management Corp., HPS Investment Partners, Blackstone Inc., Blue Owl Capital Inc., Sixth Street Partners, and Golub Capital provided the debt, according to a Friday news release.

Banks and private credit firms regularly compete to provide financing to companies, especially leveraged buyouts and take-privates.

Lenders including private credit firms and banks had been contemplating a roughly $3 billion financing package, and one iteration included pricing at around 4.75 percentage points over the Secured Overnight Financing Rate, Bloomberg previously reported. The education software provider had also drawn takeover interest from Warburg Pincus.

Vista Equity Partners and Onex Partners will continue to have minority investments in PowerSchool, according to the news release. The transaction is expected to close in the second half of 2024 and will take the company private.

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