Blackstone Group Inc’s credit unit and Starwood Capital Group LLC will provide 1.8 billion pounds ($2.5 billion) in debt financing for the investment firm’s acquisition of a British holiday company, according to a person familiar with the transaction. The two private credit providers will split the financing equally for Blackstone’s buyout of Bourne Leisure Holdings Ltd, said the person, who declined to be identified because the details are private. The company owns the iconic British holiday operator Butlins.

The market for non-bank lending has swollen dramatically over the last ten years, with Europe moving fast to catch up with the more mature U.S. market. The debt package backing the Bourne buyout is of a size with the largest such private debt financing so far, a 1.6 billion-pound loan and 300 million-pound capital expenditure facility arranged for The Ardonagh Group last year.

It’s not clear if some of the debt will be offered to other investors, said the person, adding that Blackstone will distribute the real estate-linked debt across its various credit funds including its real estate debt and direct lending vehicles.


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Source: BNN Bloomberg

By Rachel McGovern