Key Takeaways
- • Mercer Advisors Inc., a private equity-owned wealth management firm, is refinancing private debt with a $1.65 billion leveraged loan, according to Bloomberg.
- • The seven-year term loan priced at 2.75 percentage points over the floating-rate benchmark and at 99.75 cents on the dollar, per a person with knowledge of the matter.
- • The deal includes a $250 million delayed draw term loan earmarked for acquisitions and other investments.
- • The transaction is part of a broader trend of companies moving away from private credit toward cheaper bank loan market financing.
Summary
Mercer Advisors Inc., a wealth management firm owned by a private equity sponsor, is seeking to lower its borrowing costs by refinancing its private debt with a $1.65 billion leveraged loan, according to Bloomberg. The financing comes amid a wave of companies replacing private credit facilities with cheaper capital available in the bank loan market.
According to a person with knowledge of the matter, the new seven-year loan was priced on Thursday, September 17, 2026, at an interest rate of 2.75 percentage points over the floating-rate benchmark, with the debt sold at 99.75 cents on the dollar. The source asked not to be identified because the information is private.
The offering also includes a $250 million delayed draw term loan. According to the same person, those proceeds will fund acquisitions and other investments, indicating that the firm is preserving capacity for growth alongside its refinancing. Bloomberg's report was updated later that day, but the primary details of pricing and structure were reported as of the initial publication.
The deal illustrates the competitive dynamics between private credit lenders and the broadly syndicated leveraged loan market, where borrowers with sufficient credit quality can access lower spreads. For allocators to private credit strategies, the transaction is a reminder that refinancing activity can pressure direct lending portfolios as sponsor-backed borrowers migrate to syndicated markets when conditions permit.
According to a person with knowledge of the matter, the new seven-year loan was priced on Thursday, September 17, 2026, at an interest rate of 2.75 percentage points over the floating-rate benchmark, with the debt sold at 99.75 cents on the dollar. The source asked not to be identified because the information is private.
The offering also includes a $250 million delayed draw term loan. According to the same person, those proceeds will fund acquisitions and other investments, indicating that the firm is preserving capacity for growth alongside its refinancing. Bloomberg's report was updated later that day, but the primary details of pricing and structure were reported as of the initial publication.
The deal illustrates the competitive dynamics between private credit lenders and the broadly syndicated leveraged loan market, where borrowers with sufficient credit quality can access lower spreads. For allocators to private credit strategies, the transaction is a reminder that refinancing activity can pressure direct lending portfolios as sponsor-backed borrowers migrate to syndicated markets when conditions permit.
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