Apollo-Led Group grants TPG-backed company $1 billion loan

(Bloomberg) – A group led by Apollo Global Management has provided a $1.1 billion (A$1.5 billion) loan to TPG-backed Greencross Pty Limited as companies increasingly turn to direct lenders for debt financing.

The loan, which is funded in the form of a unitranche, will be used for a recapitalization, according to a person familiar with the matter, who asked not to be identified because the transaction is private. The deal is split between US and Australian dollars, the person said.

Greencross, which was acquired by TPG in 2019, is an Australia-based pet retailer and veterinary clinic operator. Apollo led the financing with a consortium including HPS Investment Partners, Crescent Capital Group, Golub Capital, Macquarie, Owl Rock, Partners Group and MS Capital Partners.

TPG sold a 45% stake in the pet and veterinary business to pension funds AustralianSuper and HOOPP earlier this month, valuing the deal at $3.5 billion, according to the Australian Financial Review. TPG retained a majority stake.

Read more: Why Unitranche loans went from a niche to billions: QuickTake

Unitranche lending, which bypasses banks, is becoming an increasingly popular way to finance debt transactions. The deal follows a record $5.1 billion loan to SoftBank Group Corp., Bloomberg News previously reported.

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