Verizon Communications Inc.’s media division is tapping the U.S. leveraged loan market to fund its $5 billion leveraged buyout by Apollo Global Management Inc.
The two new loans, which have a tenor of six years, are sized at $750 million apiece, according to a person with knowledge of the matter. One portion is a so-called “high-yield style term loan B” that isn’t callable for two years and has no amortization, said the person, who asked not to be identified because the deal is private.
Verizon Media, which is comprised of brands including Yahoo and AOL, is borrowing at a time when other LBO-backing loans are also in the market. Two U.S. bus divisions owned by FirstGroup Plc are raising about $2 billion to finance private equity firm EQT AB’s acquisition of the units while EmployBridge LLC, also being acquired by Apollo, is also offering a term-loan B.
By Jeannine Amodeo and Allan Lopez
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