Golub Leads $1 Billion Private Credit Deal for TA Carveout

  • Debt facility structure for carveout called ‘aggressive’
  • Lenders have been sweetening deals to appease sponsors
Lawrence Golub, chief executive officer of Golub Capital.Photographer: SeongJoon Cho/Bloomberg
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Golub Capital led a roughly $1 billion private debt facility to support TA Associates acquisition of Momentive Software, a carveout from Community Brands, according to people with knowledge of the matter.

The deal, which some market participants viewed as aggressively structured, included a roughly $700 million term loan that equates to about a 70% loan-to-value, a risk assessment measure that examines the ratio of the loan to the value of the underlying asset, said the people, who asked not to be identified discussing a private transaction. The deal included a delayed draw term loan and revolver, according to a press release.