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(Bloomberg) — A private credit fund managed by BDT & MSD Partners LLC — the merchant bank tied to billionaire Michael Dell — sold $300 million of investment-grade bonds on Tuesday.
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MSD Investment Corp. — a business development company — sold the three-year notes at a yield 2.4 percentage points above Treasuries, according to a person familiar with the matter. That spread tightened during the sale process from initial discussions around 2.7 percentage points, the person added, declining to be identified discussing private information.
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In 2023, Dell’s MSD Partners combined with former Goldman Sachs Group Inc. banker Byron Trott’s merchant bank BDT & Co. to form a single merchant bank, BDT & MSD Partners. Dell, the founder and chief executive officer of Dell Technologies Inc., is one of BDT & MSD’s largest investors.
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Proceeds raised from the BDC’s note sale will help refinance debt and go toward general corporate purposes, which may include investments in the BDC’s portfolio companies, the person familiar said. The notes are expected to be graded Baa3 by Moody’s Ratings and BBB- by Fitch Ratings.
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MSD was among eight borrowers that raised capital in the US investment-grade primary market on Tuesday, ahead of any market volatility that may follow the release of a key US inflation report on Wednesday.
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The bookrunners on MSD’s offering were BNP Paribas SA, Deutsche Bank Group AG, Goldman Sachs Group Inc., JPMorgan Chase & Co., Royal Bank of Canada, and Sumitomo Mitsui Banking Corp., the person familiar added.
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A spokeswoman for SMBC declined to comment. Spokespeople for the other bookrunners, as well as MSD Investment and BDT & MSD, didn’t immediately respond to a request for comment.
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Issuer Profile
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Debt distribution: 2171470D US Equity DDIS
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Capital structure: 2171470D US Equity CAST
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Related securities: 2171470D US Equity RELS
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Ratings history: 2171470D US Equity CRPR
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This story was produced with the assistance of Bloomberg Automation
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English (US)