NEW YORK: An Apollo Global Management-led group has provided a US$1.1bil (RM4.6bil) loan to TPG-backed Greencross Pty Ltd as companies increasingly turn to direct lenders for debt financing.

       The loan, which is being financed in the form of a unitranche, will be used for a recapitalisation, according to an Apollo spokesperson.

       The deal is being split between United States and Australian dollars, Apollo said.

       Greencross, which was acquired by TPG in 2019, is a pet retailer and veterinary clinic operator based in Australia.

       Apollo led the financing with a consortium including HPS Investment Partners, Crescent Capital Group, Golub Capital, Macquarie, Owl Rock, Partners Group and MS Capital Partners.

       TPG sold a 45% stake of the pet and vet business to pension funds AustralianSuper and HOOPP earlier this month, valuing the deal at US$3.5bil (RM14.7bil), according to the Australian Financial Review.

       TPG retained a controlling stake.

       Unitranche loans, which bypass banks, are becoming an increasingly popular way to finance debt transactions.

       The deal comes on the heels of a record US$5.1bil (RM21.5bil) loan to SoftBank Group Corp, Bloomberg News had previously reported. — Bloomberg