The Ardonagh Group has reportedly secured an ultra-cheap private credit loan.
A Bloomberg report said alternative investment manager Ares Management Corporation is leading a US$3.3 billion private credit loan for Ardonagh.
Citing people familiar with the matter, the report said the loan is set to price at 475 basis points over a US reference rate, making the private credit deal “among the cheapest” on record.
It was indicated that prices are being pushed down by direct-lending funds to stay competitive while battling it out with traditional underwriter banks.
As previously reported, Ardonagh’s US$2.3 billion bond sale is set to be managed by Wall Street lenders led by Morgan Stanley and Goldman Sachs.
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