Apollo Global Management Inc. and Silver Point Capital have led a roughly $900 million direct loan to Vantage Specialty Chemicals, replacing the company’s existing bank-arranged financing, according to sources familiar with the matter, as reported by Bloomberg.
The transaction is the latest example of companies increasingly shifting from traditional bank loans to private credit markets. Firms are drawn to the flexibility, customized structures, and reduced disclosure requirements that direct lending offers compared to conventional financing. Oak Hill Advisors also contributed to the funding, one source said, though they declined to be identified due to the private nature of the transaction.
Vantage Specialty Chemicals, based in Illinois, is owned by private equity firm H.I.G. Capital. The firm originally created Vantage in 2008 through a carveout, sold it in 2012, and repurchased it in 2017. This refinancing follows a pattern of private equity-backed companies leveraging direct loans to navigate challenging credit conditions while maintaining strategic control.
The transaction comes amid broader market trends. Buyout firms have increasingly embraced direct lending as they seek alternatives to traditional banks. Recent high-profile deals include Blue Owl Capital and Oak Hill’s refinancing of Wrench Group for over $1 billion and BlackRock’s similar transaction involving Syndigo’s leveraged loans.
The move has also impacted credit ratings. On Friday, Fitch Ratings withdrew its B- credit grade for Vantage after the company refinanced its senior secured term loan and revolving credit facility through private markets. This follows a downgrade in June, when Fitch cited tightening liquidity and weaker earnings forecasts for the chemicals sector.
Vantage had previously raised over $800 million from loan markets in 2023, with pricing at 4.75 percentage points above the benchmark rate, Bloomberg reported at the time.
Representatives from Silver Point declined to comment, and Apollo, Oak Hill, Vantage, and H.I.G. did not respond to requests for comment.
