(Bloomberg) — Banks on a loan backing UK streaming platform DAZN Group Ltd.’s takeover of Australian pay-television company Foxtel Management Ltd. are considering lifting the debt’s interest margin to draw interest from institutional lenders, according to people familiar with the matter.
The underwriters of a A$1.8 billion ($1.1 billion) acquisition loan are seeking to raise the margin on a A$600 million five-year tranche by 75 basis points to 500 basis points over the benchmark Bank Bill Swap Bid Rate, said the people familiar, who asked not to be named discussing private matters. Private credit players are among the institutional investors that the banks are hoping to attract, the people added.
Bank of America Corp., Citigroup Inc. and Commonwealth Bank of Australia Ltd. are among the loan’s underwriters. BoA and Citigroup declined to comment, while representatives of CBA and DAZN were not immediately available for comment.
Private credit providers are a growing source of funding for borrowers in Australia, but charge higher interest rates compared to traditional banks. Firms that recently tapped the sector include Oaktree Capital Management LP’s A$325 million facility from Ares Management Corp. and Barings LLC for its takeover of AZ Next Generation Advisory, and Family Doctor Pty.’s A$300 million private loan from KKR Group Co.
The tranche that is being re-priced is part of a larger borrowing for DAZN, which includes an A$600 million four-year revolving credit facility and a A$600 million four-year term loan piece, Bloomberg News previously reported.
DAZN completed the Foxtel acquisition last week, according to a company statement.
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