Latest news with #PowerGridServices
Yahoo
20-05-2025
- Business
- Yahoo
Apollo to Fund $2B PowerGrid Acquisition with $1B Private Debt
Apollo Global Management Inc. (NYSE:APO) is financing its ~$2 billion acquisition of PowerGrid Services from Sterling Group through a ~$1 billion private debt package, as reported by Bloomberg on Tuesday. This financing is being provided by the direct lending businesses of Brookfield Asset Management, Blackstone Inc., and JPMorgan Chase & Co. A team of professional financial investors in a modern office analyzing Investment opportunities. The debt package includes a $650 million term loan, a $200 million delayed-draw term loan, and a $125 million revolving line of credit. The larger term loan will mature in 7 years and will be issued at a discount of 99 cents on the dollar, where PowerGrid will pay an interest rate of 4.75 percentage points over the US benchmark. This interest rate has the potential to decrease by 0.25 percentage points over time. This transaction highlights the growing trend of private credit firms increasing their involvement in financing private equity acquisitions, particularly as M&A activity has seen a slowdown in the broader market. Apollo Global Management Inc. (NYSE:APO) is a private equity firm that specializes in investments in credit, private equity, infrastructure, secondaries, and real estate markets. Apollo announced the acquisition of a majority stake in PowerGrid Services earlier on May 13. PowerGrid Services is a US provider of electric utility maintenance and construction. While we acknowledge the potential of APO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than APO and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Bloomberg
19-05-2025
- Business
- Bloomberg
Apollo Taps Nearly $1 Billion of Private Debt for PowerGrid Buy
Apollo Global Management Inc. is turning to private credit to finance its acquisition of electric utility PowerGrid Services from Sterling Group, according to people with knowledge of the matter. Brookfield Asset Management, Blackstone Inc. and JPMorgan Chase & Co. 's direct lending businesses are funding a nearly $1 billion debt package to finance Apollo's approximately $2 billion purchase, said the people, who asked not to be identified discussing private information.
