Private Lenders Set to Take Over Alacrity in Debt Restructuring
Live Mint-- Direct lenders including Antares Capital, Blue Owl Capital Inc and KKR & Co are preparing to take over insurance claims manager Alacrity Solutions, the latest restructuring in the private credit market, according to people with knowledge of the matter. BlackRock’s existing equity investment will be completely wiped out, the people said, adding the firm invested about $560 million in equity at the time through its Long Term Private Capital strategy. Alacrity’s debt load, which was already in place when BlackRock purchased the stake, includes a roughly $1 billion unitranche from direct lenders and a more than $500 million junior capital piece from Goldman Sachs Asset Management, the people said. Antares, Blue Owl, KKR and the other lenders will convert about half of their loan into equity, while also providing about $175 million of new debt in the form of a revolving credit facility and a delayed-draw term loan, they said.
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