Yahoo Finance Blue Owl Beat Other Lenders on Price for $335 Million Facility
(Bloomberg) -- Blue Owl Capital Inc. beat out all other lenders to provide natural gas servicer, Dresser Utility Solutions, a $335 million credit facility as it was able to offer lower pricing, according to people with knowledge of the matter.
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The company’s sponsor, First Reserve, was in discussions with other direct lenders but proceeded with only Blue Owl as it’s providing the entire package priced at 5.5 percentage points over the Secured Overnight Financing Rate, said the people, who asked not to be identified as the details are private.
The deal represents an ongoing trend of larger private credit players acting as the sole lender in relatively minor deals by being able to offer pricing and terms that other smaller lenders can’t compete with. It comes at a time when the fight with banks for larger deals heats up.
The sponsor and the lender are familiar with each other, having worked on a handful of deals together, including financings for CHA Consulting, GridTek Utility Services, LineStar Integrity Services and Applied-Cleveland Holdings, added the people familiar with the deal.
Representatives from Blue Owl, First Reserve and Dresser declined to comment.
The facility consisted of a roughly $300 million term loan and a $35 million revolver that will be used to refinanced the company’s existing debt, according to the people, which includes a syndicated $250 million first lien and $35 million revolver along with a $50 million second lien loan privately placed to a handful of other direct lenders, according to filings.
The Houston-based company was acquired by the energy system focused private equity firm in 2018 from Baker Hughes.
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