A key $600 million tranche may carry higher interest to lure institutional funding
DAZN Group Ltd.’s recent acquisition of Australian pay-TV provider Foxtel is now drawing attention from debt markets, as lenders reassess loan terms to secure broader investor interest.
People familiar with the matter said banks underwriting the $1.8 billion loan tied to the takeover are in talks to raise pricing on a key portion of the debt. The five-year $600 million tranche could see its margin lifted by 75 basis points, bringing it to 500 basis points over the Bank Bill Swap Bid Rate. The adjustment is aimed at attracting institutional lenders, particularly those from the growing private credit sector.
Bank of America, Citigroup, and Commonwealth Bank of Australia are managing the deal. While BoA and Citigroup declined to comment, CBA and DAZN have yet to issue responses.
The push to revise loan pricing reflects a broader shift in Australia’s funding landscape, where private credit firms are increasingly stepping in with higher-yield offerings. Recent deals in the sector include $325 million raised by Oaktree Capital Management for its acquisition of AZ Next Generation Advisory, supported by Ares Management and Barings, and a $300 million facility secured by Family Doctor Pty Ltd. from KKR.
DAZN’s full financing package reportedly includes two additional components: a four-year revolving credit facility and a four-year term loan, each also worth $600 million. The company finalised its Foxtel acquisition last week.
