Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeFinanceNewsBrookfield seeks US$525 million loan to fund La Trobe dividendThe deal is the latest in a string of global transactions as buyout firms face continuing pressure to return money to investorsAuthor of the article:Last updated 16 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.Earlier this year, Brookfield sold a minority stake in La Trobe Financial to Abu Dhabi’s Axight Capital Ltd., a deal that valued the Australian manager at US$2.1 billion. Photo by Peter J. Thompson/PostmediaBrookfield Corp. is seeking a loan of A$750 million (US$525 million) for La Trobe Financial Corp PTY., an Australian non-bank lender, to fund a payout to investors and refinance existing debt, according to people familiar with the matter.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe deal is split into a A$700 million five-year loan and a A$50 million revolving credit facility, the people said, asking not to be identified discussing private matters. Morgan Stanley and UBS are arranging the deal, which is structured as a so-called covenant-lite term loan B, giving the company more flexibility with less oversight, the people said. The financing pays an interest margin of 475 basis points over the benchmark Bank Bill Swap Yield, or BBSY, they added.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againA representative for Brookfield declined to comment.A dividend recapitalization, where sponsors increase borrowings of a portfolio company to fund a payout, is becoming a common route in private equity to meet return targets when a sale or an initial public offering is difficult.The deal is the latest in a string of global transactions as buyout firms face continuing pressure to return money to investors. In the Asia-Pacific region, managers such as Warburg Pincus LLC, Navis Capital Partners Ltd and CVC Capital Partners PLC have embarked on similar financings.Earlier this year, Brookfield sold a minority stake in La Trobe Financial to Abu Dhabi’s Axight Capital Ltd., a deal that valued the Australian manager at US$2.1 billion. The sale was concluded after La Trobe suffered outflows last year when the Australian Securities and Investments Commission issued temporary bans on its Australian and United States credit funds. Separately, the Canadian manager was hit with a massive A$2 billion loss in Healthscope Ltd., a private hospital operator currently in administration.The Australian Financial Review earlier reported on the loan size and lead managers. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.