Opinion
Blackstone’s mega private credit deal is a sign of the times
Private credit funds are the solution for private equity’s problems. But can the good times last for Wall Street’s hottest sector? Blackstone thinks they can.
Jonathan ShapiroSenior reporterIn April, one of this year’s biggest loan deals caught the attention of the credit market. Tech hardware firm Park Place Technologies secured $US1.7 billion ($2.5 billion) of funding from Blackstone, the proceeds of which were used to repay lenders and allow its private equity owners to take some money off the table.
The package included $US400 million of payment-in-kind notes, in which the borrower can defer interest. PIKs are a credit bull-market feature that have made a comeback, suggestive of an easing of lending standards.
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