Ares Management (NYSE:ARES) is arranging a $2.2 billion direct loan to help fund a healthcare services acquisition, marking it one of the largest private credit deals this year.
The loan will finance pharmacy benefits manager MedImpact Holdings Inc.’s acquisition of Medical Card System Inc, according to Bloomberg.
Discussions are still underway and could change.
The financing is expected to price at a spread of at least eight percentage points above the benchmark rate.
The debt will be issued on a second-lien basis, placing the new lenders behind existing senior creditors in the repayment hierarchy.
