Blackstone Takes Bank Pitches for Up to $2B Dividend Recap for VFS Global to Refinance $1.5B Apollo-Led Private Loans

  Reporting: Maryna Irkliyenko Blackstone is hearing bank pitches to raise up to $2 billion of debt to refinance the $1.5 billion of private loans it took out to support its acquisition of Dubai-headquartered visa outsourcing services business VFS Global and pay a shareholder dividend, sources told Reorg. The asset is currently generating EBITDA north of $400 million, sources said. As part of the dividend recap, the business would need to repay an outstanding vendor note, sources said. The business is targeting a rating of B1 for its upcoming debt raise in order to secure tighter pricing, sources said. The group was rated B3 by Moody’s and B- by S&P in 2021, prior to Blackstone’s acquisition. Apollo provided around $1.5 billion of private loans to support Blackstone’s acquisition of VFS, which it then sold down to other investors in a syndication-like process, the sources said. Blackstone acquired the business from EQT and the Kuoni and Hugentobler Foundation in 2021, with the latter retaining a minority stake, as reported. The enterprise value was around $2.5 billion. VFS Global is a provider of visa outsourcing services, such as administrative and non-judgmental tasks related to visa, passport and consular services, for governments and[...]