Lloyds partners with Oaktree to fund UK buyouts
Lloyds Banking Group has partnered with Oaktree Capital on a deal to fund UK buyouts.
Under the terms of the partnership, Oaktree will provide loans up to the value of £175m to Lloyds clients, to fund private equity takeovers and help refinance upcoming debt maturities in the UK mid-market. Lloyds will also contribute a portion of its own capital to finance the loans.
The partnership will see a comprehensive debt solution offered to clients, with term debt, acquisition and working capital facilities in addition to agency and full ancillary product services.
Up to £1bn is expected to be deployed over the next three years via the partnership.
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“We have a proven track record of financing sponsor clients’ transactions in the mid-market, and by partnering with Oaktree, we can provide a market-leading one-stop solution,” said James Ranger, managing director and head of sponsors and structured finance at Lloyds Bank.
“As a result, sponsor clients will be able to finance larger transactions without needing to bring on board additional lenders, which will make deals easier to conclude and reduce uncertainty for all concerned.
“Oaktree’s deep expertise in this space makes them an ideal partner for us, and we look forward to further supporting our sponsor clients’ growth ambitions.”
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“Providing financing solutions to sponsor-backed companies in the UK remains a significant long-term opportunity,” said Nael Khatoun, managing director and portfolio manager within Oaktree’s European private debt strategy.
“We believe Oaktree’s partnership with Lloyds Bank will be a compelling proposition to meet this demand, providing borrowers with certainty of execution and an expedited transaction process.
“Lloyds Bank has long established itself as a market leader in the UK, and we look forward to working with them to provide sponsor clients with a comprehensive one-stop senior debt solution for their capital needs.”
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