Blackstone, one of the global titans in alternative asset management with assets surpassing $1 trillion, has spearheaded a substantial $2 billion financing initiative for third party data center maintenance provider Park Place Technologies, aimed at debt refinancing and providing payouts to its private equity owners, Bloomberg reports.
This large financial package was designed in partnership with Blue Owl Capital and consists of a $1.7 billion loan backed by a delayed-draw term loan and a revolving credit facility. Due to the confidential nature of the transaction, those who are acquainted with the facts have chosen to remain anonymous. However, they have identified this tactical choice as a major advantage that private credit firms have over conventional Wall Street banks.
The transaction would mark a pivotal shift in the financing landscape, where private credit firms are progressively outpacing banks by offering more attractive terms. This trend is evident in the recent redirection of borrowers like CentralSquare Technologies from bank-financed loans towards $1.2 billion packages provided by direct lenders.
Park Place Technologies provides a comprehensive suite of data center services that support the full lifecycle of IT infrastructure management. The company specializes in third-party maintenance, delivering cost-effective post-warranty support for hardware across a wide range of systems including servers, storage, and networking equipment. Their services extend beyond simple maintenance, offering managed services that ensure operational efficiency and help optimize IT asset uptime.
Park Place Technologies’ global reach would allow them to deliver consistent and reliable data center maintenance services to clients worldwide, helping them maximize the performance and longevity of their data center investments while reducing operational costs.
Park Place’s Private Equity Investors
Cleveland-based Park Place Technologies would be able to refinance a $845 million first-lien loan and a $230 million second-lien loan, which were both first obtained via banking channels and then made available to institutional investors, using the money raised from this new financial transaction. In addition, the money will enable GTCR and Charlesbank Capital Partners, Park Place’s private equity investors, to receive a dividend distribution, therefore increasing their continued commitment in the technology services provider.
Although Blackstone, Blue Owl Capital, and GTCR spokespeople declined to comment on the deal, according to Bloomberg, answers from Charlesbank and Park Place were still awaited. LevFin Insights was the first to reveal the deal’s preliminary information.
The mechanics of the collaboration may be traced back to major equity moves, wherein Chicago-based GTCR acquired Park Place in 2015 and then brought in Boston-based Charlesbank as a strategic investor. This financial move would highlight how the IT industry’s financial strategies are becoming more sophisticated and dependent on private borrowing, added Bloomberg, pointing to a move away from conventional banking frameworks and toward more expansive and adaptable financing options.
