Lloyds Bank and Oaktree Capital Management have entered a strategic partnership to support UK middle-market sponsor-backed borrowers. Lloyds Bank’s structured debt finance team will partner with Oaktree’s European private debt platform to provide clients with a senior debt solution for new buyouts and refinancings with term debt, acquisition and working capital facilities in addition to agency and full ancillary product services.
“We have a proven track record of financing sponsor clients’ transactions in the mid-market, and by partnering with Oaktree, we can provide a market-leading one-stop solution,” James Ranger, managing director and head of sponsors and structured finance at Lloyds Bank, said. “As a result, sponsor clients will be able to finance larger transactions without needing to bring on board additional lenders, which will make deals easier to conclude and reduce uncertainty for all concerned. Oaktree’s deep expertise in this space makes them an ideal partner for us, and we look forward to further supporting our sponsor clients’ growth ambitions.”
“Providing financing solutions to sponsor-backed companies in the UK remains a significant long-term opportunity,” Nael Khatoun, managing director and portfolio manager within Oaktree’s European private debt strategy, said. “We believe Oaktree’s Partnership with Lloyds Bank will be a compelling proposition to meet this demand, providing borrowers with certainty of execution and an expedited transaction process. Lloyds Bank has long established itself as a market leader in the UK, and we look forward to working with them to provide sponsor clients with a comprehensive one-stop senior debt solution for their capital needs.”
The Partnership will have a combined single name hold capacity of £175 ($225.8) million per transaction. Lloyd’s and Oaktree will seek to originate loans to UK middle-market sponsor-backed companies with £10 ($12.9) – £75 ($96,8) million in EBITDA.
Lloyds Bank and Oaktree have made a multi-year commitment to work together. PwC, Lloyds Bank Corporate Markets and Linklaters served as advisors to Lloyds Bank. Oaktree was advised by White & Case and EY.
