12:19 PM EDT, 10/25/2024 (MT Newswires) -- Blackstone (BX) is securing 5.5 billion Australian dollars ($3.64 billion) in financing from banks, including Citigroup, DBS Group, and Deutsche Bank, for its proposed acquisition of AirTrunk, sidelining private credit funds that were earlier considered, Bloomberg reported Friday, citing people familiar with the matter.

The funding package will include a term loan and a revolving credit facility at the holding company level, the report said.

Banks reportedly offered more favorable terms and lower interest costs than private credit funds, which had been in talks to provide A$1.5 billion of junior debt. The financing arrangements are ongoing and could be subject to change, the people reportedly told Bloomberg.

In addition to the new funding, Blackstone will roll over A$7 billion in existing loans for AirTrunk, with lenders waiving change-of-control clauses, the report said.

The buyout, announced in September, values AirTrunk at A$24 billion, marking Blackstone's largest investment in the Asia-Pacific region, Bloomberg said.

Blackstone, Citigroup, DBS, and Deutsche Bank didn't immediately respond to queries.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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