Blog Post
Octus on Credit: Quirch, Corids, Heritage: Private Credit counters BSL market
Emily Fasold, Deal Origination Editor, Americas
The ongoing tug-of-war between public and private debt markets is tilting toward private credit this fall, with direct lenders underwriting several deals for existing BSL borrowers.
Closing deals in the BSL market—for M&A or refinancing—has grown more difficult in recent weeks as primary market investors scrutinize credits more closely. This shift has driven several BSL borrowers to direct lenders for financing, particularly in regulatory or commodity-sensitive sectors like food and beverage and medical devices.
Notable examples include Palladium-backed food distributor Quirch Foods. Last week, Octus reported that Ares and Silver Point are leading an $800 million debt package with pricing of SOFR+650 bps and 98 to 98.5 OID for Quirch to refinance its existing SOFR+450 bps term loan due 2027. Cardiovascular device maker Cordis also refinanced its broadly syndicated debt with private credit recently. In October, Octus reported that HPS Investment Partners was leading a roughly $500 million financing package for the Hellman & Friedman-backed company to refinance its existing term loan maturing in 2028. The refinanced loan was priced at SOFR+450 bps to 500 bps.
On the deal origination front, Octus has also been following M&A processes for several BSL borrowers likely to be funded with private credit, including Apollo-backed Heritage Grocers and Lindsay Goldberg-backed Pike Corp.
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