Banks Funding Medline Buyout Seek to Offload $7.8 Billion Debt
(Bloomberg) -- The banks funding the biggest leveraged buyout since the financial crisis for Medline Industries Inc. are looking to offload $7.8 billion in debt financing to investors.
The company launched syndication for a $3.8 billion secured bridge facility and a $4 billion unsecured bridge facility, according to people familiar with the plan who asked to not be named discussing a private transaction. A lender call for the loan deals is set for 10 a.m. in New York on Thursday.
A group of private equity firms comprised of Blackstone Group Inc., Carlyle Group Inc. and Hellman & Friedman LLC are taking a majority stake in Medline in a bet the largest private U.S. manufacturer and distributor of medical supplies has further room to grow. Singapore’s GIC Pte Ltd. will also invest as part of the partnership.
The transaction, valued at more than $30 billion, is being financed with $7.8 billion of junk bonds and $7 billion of leveraged loans.
Bridge loans are typically later replaced with permanent financing from the bond market, and the full debt package is expected to be announced after Labor Day in early September.
Goldman Sachs Group Inc. is leading the unsecured bridge, while JPMorgan Chase & Co. is leading the secured bridge. Bank of America Corp., Barclays Plc, and Morgan Stanley are also involved.
©2021 Bloomberg L.P.