Blue Owl, Oak Hill Lead $1.3 Billion Debt Refinancing for Wrench Group

Blue Owl Capital and Oak Hill Advisors are leading a $1.3 billion private debt package for Wrench Group, replacing its bank financing. The package includes a term loan, delayed-draw loan, and revolving credit facility. Wrench Group is backed by private equity firms Leonard Green & Partners, TSG Consumer Partners, and Oak Hill Capital. Crescent Capital Group is also a lender. The deal replaces Wrench's existing leveraged loan and marks a notable refinancing in the private credit market.

A consortium of private credit firms, led by Blue Owl Capital Inc. and Oak Hill Advisors, has arranged a $1.3 billion debt package for Wrench Group. This package replaces the residential services company's existing bank financing and includes a term loan, a delayed-draw loan, and a revolving credit facility. The term loan bears interest at 4.75 percentage points over the US benchmark and was sold at a discount of 99 cents on the dollar Blue Owl Capital Corporation $OBDC Holdings Boosted by Trinity Financial Advisors LLC^[1].

Wrench Group provides residential HVAC, plumbing, and electrical services. It is backed by private equity firms Leonard Green & Partners, TSG Consumer Partners, and Oak Hill Capital. Crescent Capital Group is also a lender in the new financing. Blue Owl will act as the administrative agent on the loan Blue Owl Capital Corporation $OBDC Holdings Boosted by Trinity Financial Advisors LLC^[1].

The deal replaces Wrench's existing leveraged loan and is a significant refinancing in the private credit market. It comes amidst ongoing competition between banks and direct lenders for debt refinancings. Other notable recent transactions include a group of private credit firms led by BlackRock Inc. refinancing leveraged loans for Syndigo, and Liquid Tech Solutions turning to the leveraged loan market for an $808 million deal to refinance private debt Blue Owl Capital Corporation $OBDC Holdings Boosted by Trinity Financial Advisors LLC^[1].

Representatives for Blue Owl and Oak Hill Advisors declined to comment on the deal. Crescent, Leonard Green, TSG, Oak Hill Capital, and Wrench Group did not respond to requests for comment. Jefferies Financial Group Inc., the agent on Wrench Group’s bank debt, has informed lenders that the company’s existing leveraged loan is being paid off Blue Owl Capital Corporation $OBDC Holdings Boosted by Trinity Financial Advisors LLC^[1].