Finastra refinances $5.3 billion via Oak Hill Advisors, sets record

By William Gullotti

Buffalo, N.Y., Sept. 13 – Finastra Ltd. (formerly known as Misys) refinanced $5.3 billion of debt with Oak Hill Advisors as lead arranger in the largest private credit transaction in U.S. history, according to a press release on Wednesday.

The financing includes a $4.8 billion unitranche term loan and a $500 million revolver issued with a coupon at SOFR plus 725 basis points and a price of 98.

According to the press release, the milestone transaction will optimize Finastra’s capital structure by refinancing its maturing syndicated first- and second-lien debt while deleveraging the company and reducing overall debt service.

Oak Hill Advisors led a group of more than 20 lenders and committed to over $800 million of the total facility.

"This transaction is notable for both its record size and use of a private unitranche to refinance existing indebtedness from the syndicated markets. We expect this theme to contribute to the continued growth of direct lending for larger companies," said Alan Schrager, portfolio manager and senior partner at Oak Hill, in the release.

Further relevant details, such as maturity dates and/or extension options, were not disclosed in the press release.

Finastra is a London-based financial software company.

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