Wall Avenue’s doom-mongers spent years warning that personal lenders could be the following bubble to burst when central banks tightened coverage. As an alternative, the funds have gotten much more ubiquitous as firms scramble to refinance debt in the next interest-rate setting.
Take PetVet Care Facilities. The Westport, Conn.-based firm operates 450 veterinary clinics and hospitals throughout the U.S. and has been owned by private-equity large KKR since 2018. It has been a profitable acquisition, however the firm is dealing with a wall of debt maturities that may solely be refinanced at larger value. KKR is offering $600 million of extra fairness to ease the burden, whereas private-debt lender Blue Owl Capital will prolong PetVet a $2.3 billion senior mortgage.
Copyright ©2023 Dow Jones & Firm, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8