(Bloomberg) – With lending banks from UK streaming platform DAZN Group Ltd., a loan bank, acquired Australian pay-TV company Foxtel Management Ltd., is considering raising interest on debt to get interest from institutional lenders, according to people on the matter.
Familiar people say that familiar should not be named as a private matter, which is a $1.8 billion ($1.1 billion) acquisition loan underwriters are seeking to increase profits of $600 million by 75 basis points, up 75 basis points to 500 basis points. Private credit players are one of the institutional investors banks want to attract, people added.
Bank of America, Citigroup and Commonwealth Bank of Australia Limited are among the underwriters of the loan. BOA and Citigroup declined to comment, while representatives of CBA and DAZN did not comment immediately.
Private credit providers are an increasing source of funding for Australian borrowers, but have higher interest rates than traditional banks. Companies that have recently taken advantage of the industry include a $325 million factory in Oaktree Capital Management LP, which acquired AZ Next Generation Advisory and Family Doctor Pty from Ares Management Corp. and Barings LLC. It is a $300 million private loan from KKR Group Co..
Bloomberg News previously reported that the repriced batch is part of DAZN’s larger loan, which includes a $600 million four-year revolving line of credit and a $600 million four-year term loan.
According to a company statement, DAZN completed the acquisition of Foxtel last week.
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