KKR Said to Lead $3B Private Debt Deal for Thoma Bravo's Flexera

KKR (NYSE:KKR) is reportedly taking the lead on a private credit package of ~$3B to refinance Flexera Software's syndicated debt and initiate a dividend.

Flexera is a portfolio company of closely held private equity firm Thoma Bravo. KKR's (NYSE:KKR) credit arm will provide the largest amount of financing, Bloomberg News reported, citing people with knowledge of the matter. Others included in the deal are Blackstone (BX), Ares Management (ARES), HPS Investment Partners, and Golub Capital, along with Thoma Bravo's own credit business, they said.

The financing consists of a $2.03B term loan, a €590M ($689M) loan, and a $150M a revolving credit facility, the people said. Both loans are being sold at 4.75 percentage points above their respective dollar-  and euro-denominated benchmarks.

While banks have been attracting business to refinance private credit loans using lower rates, direct lenders are offering higher leverage ratios to remain competitive, Bloomberg said.

Flexera's new debt will refinance a $1.95B syndicated leveraged loan due in 2028, Bloomberg reported in June. The new credit package will add almost $1B to Flexera's capital structure, according to data compiled by Bloomberg.