Record management bigwig Iron Mountain has picked up $308 million in the domestic Term Loan B market for its Australian subsidiary.
It is understood Iron Mountain and its arrangers, Barclays and Credit Agricole, priced the debt deal at 362 basis points above swaps, which was tighter than the 375 basis points guidance.
Iron Mountain Australia would use the proceeds to refinance debt it used to buy Recall Australia in 2016. That deal is remembered as the first ever all-$A TLB, and was arranged by Barclays, Credit Agricole and HSBC.
Of course the local market has come a long way since Iron Mountain’s debut $A TLB deal six years ago. TLBs, or covenant-lite loans, have gained popularity as a funding tool for private equity buy outs and other large financings, as banks retreated stepped back from the space.
The market has opened up as Australian superannuation funds and credit investors like Challenger, Metrics Credit Partners and Kapstream have grown more comfortable buying $A TLB deals. It’s at the stage where bankers reckon prices paid by issuers are on par with TLB deals in the bigger US market (once currency swaps are factored in).
Iron Mountain’s latest raising comes only weeks after global PE firm EQT and its portfolio company Icon Group raised the first ever $1 billion-plus $A TLB loan.