Hellman & Friedman’s Baker Tilly shelves $3bn refinancing and dividend recapitalisation
Baker Tilly has abandoned plans for a roughly $3bn leveraged loan refinancing after investor demand fell short of expectations, highlighting the increasingly selective conditions facing PE-backed borrowers in the syndicated debt market, according to a report by Bloomberg.
The accounting services firm, which is owned by Hellman & Friedman and Valeas Capital Partners, had sought to refinance existing private credit borrowings while also raising additional capital to fund a shareholder dividend.
The report cites unnamed Amed market sources as revealing that the proposed financing was marketed to investors last month, but prospective lenders pushed for wider pricing than the company and its advisers were prepared to accept. As a result, the transaction has been withdrawn, although it could be revisited if market conditions improve.
A spokesperson for Baker Tilly said the company had reviewed an “opportunistic refinancing” but ultimately decided not to proceed after assessing a range of market and economic considerations. The firm added that it may return to the market at a later date.
The financing would have represented Baker Tilly’s first visit to the US leveraged loan market since Hellman & Friedman and Valeas Capital acquired the business in February 2024.
In addition to refinancing debt provided by direct lenders, the package was expected to include a dividend recapitalisation of up to $1bn, potentially making it the largest dividend financing in the non-investment-grade market this year.
The decision to shelve the transaction reflects a more cautious environment for leveraged finance issuers, with investors demanding stronger protections and higher returns, particularly for borrowers seeking dividend payments alongside re-financings.
The deal also illustrates the growing pricing discipline in the broadly syndicated loan market as sponsors weigh whether to refinance private credit facilities or remain with existing lenders. With interest rates expected to stay elevated and a significant volume of leveraged debt approaching maturity over the next few years, financing conditions remain challenging for many private equity-backed companies.
Deutsche Bank had been appointed to arrange the proposed financing. Hellman & Friedman and Valeas Capital reportedly declined to comment on the transaction.
