Mercer Advisors Refinances $1.6 Billion Debt with Cheaper Syndicated Loan, Saving $29 Million Annually
Mercer Advisors has refinanced approximately $1.6 billion in private credit debt using a new syndicated bank loan priced at 2.75 percentage points above the floating-rate benchmark. The move is expected to reduce its borrowing spread by 1.75 percentage points, saving around $29 million annually on interest costs. The seven-year leveraged loan includes an additional $250 million delayed-draw term facility for future acquisitions and investments. The refinancing reflects a broader trend of companies shifting from private credit to the syndicated bank-loan market due to lower financing costs, despite banks urging highly leveraged firms to reduce debt. So far this year, over $19 billion in private credit has been moved into the syndicated loan space—more than twice what’s been refinanced back into private credit. Mercer's existing private credit lenders included KKR & Co., Ares Management Corp, BlackRock Inc., and Apollo Global Management-managed funds. The company cited greater flexibility for client support as a key benefit of the lower financing costs.
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Topics: Cost Savings Leveraged Loan Refinancing Private Credit