(Bloomberg) -- A group led by Morgan Stanley is providing a roughly $2 billion debt package to help finance KKR & Co.’s acquisition of educational software provider Instructure Holdings Inc., according to people with knowledge of the matter. Most Read from Bloomberg Trump Risks Losing Voters He Needs With Loaded Attacks on Harris Harris Just Showed Why Trump Is So Afraid of Her Markets Tear Up Popular Trades That Reached ‘Stupid Levels’ Stocks Caught in Tug of War Between Tech and Rest: Markets Wrap I Changed My Mind. The Fed Needs to Cut Rates Now. The package consists of a $1.69 billion first-lien term loan, led by Morgan Stanley, and a $365 million second-lien term loan, led by KKR’s capital-markets arm, the people said, asking not to be identified discussing a private transaction. In addition, the financing also includes a $225 million revolving credit facility, which the company can choose to tap at will. Morgan Stanley, KKR’s capital markets arm, and UBS Group AG are providing the bulk of the financing, the people added. Jefferies and Royal Bank of Canada are also participating. The package places leverage, a measure of debt to earnings, at around seven times, they said. Representatives for Morgan Stanley, UBS, Jefferies and RBC declined to comment. Representatives for KKR and Instructure did not respond to requests for comment. KKR is buying Instructure for about $4.8 billion, according to a statement on Thursday. Instructure had been working with an adviser after receiving takeover interest, Bloomberg News reported previously. Leveraged buyout activity is beginning to pick up, and the Instructure debt package is another win for the banks who regularly compete with private credit lenders to provide this type of financing. KKR’s capital markets team is known for being involved in debt financings for its own portfolio companies. Founded in 2008, Instructure provides software to help schools and teachers plan learning schedules and monitor student performance. --With assistance from Jeannine Amodeo and John Sage. Most Read from Bloomberg Businessweek The Miseducation of America’s Nurse Practitioners The $12,000 Harvard Class Celebrities Are Fighting to Get Into Joe Rogan Invaded Austin and Became Comedy’s New Kingmaker The US Economy Is Slowing, Which Is Just Fine With the Fed Elon Musk Goes All In for Trump ©2024 Bloomberg L.P.
KKR Lines Up $2 Billion Debt Package for Instructure Acquisition
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