Blackstone Leads $1.5 Billion Financing for Baker Tilly Merger

Blackstone Inc. led a private credit deal of around $1.5 billion to support Baker Tilly’s merger with Moss Adams, according to a person with knowledge of the matter.

The new debt consists of a $925 million term loan, a $400 million delayed draw term loan and a $130 million revolving credit facility, said the person, who asked not to be identified discussing private information. The financing is alongside $1 billion of privately placed existing debt, they said.

The incremental financing is set to price at 4.5 percentage points over the benchmark rate, which could be lowered to a spread of 4.25 percentage points based on leverage, according to the person.

A representative for Blackstone declined to comment. A representative for Baker Tilly didn’t immediately respond to requests for comment. 9fin reported details of the financing earlier Wednesday.

Accounting firms Baker Tilly and Moss Adams announced their merger earlier this year to form the sixth-largest accounting firm in the US, a deal valued at $7 billion.

As part of the deal, private equity firm Hellman & Friedman made an additional investment in the business alongside Valeas Capital Partners, according to an April statement.