JPMorgan Chase Oversees $2bn Loan for Janus Henderson Deal
JPMorgan Chase is leading the sale of a $2bn leveraged loan package tied to the planned acquisition of Janus Henderson Group Plc by Trian Fund Management and General Catalyst, with commitments due by 26 March, according to a report by Bloomberg as covered in Private Equity Wire. The loan supports a $7.4bn buyout that also involves refinancing existing debt and includes $600m in secured debt, $1bn in convertible preferred, and $3.6bn in common equity.
Details of the Loan Offering
Pricing discussions for the loan are centered around 2.75 percentage points above the Secured Overnight Financing Rate, with a discounted price range of 98.5–99 cents on the dollar. JPMorgan is hosting calls this week to generate demand for this deal, alongside other major leveraged buyout financings such as a $5.75bn offering for Electronic Arts Inc, deals for Select Medical Corp, and mining equipment supplier Molycop Ltd. A $7.15bn debt package to fund Clayton Dubilier & Rice’s acquisition of Sealed Air Corp is also expected to hit the market soon, as noted in Private Equity Wire.
Background of the Acquisition
Trian Fund Management, which has held a 20.6% stake in Janus Henderson since 2022, agreed to acquire the firm in December alongside General Catalyst. Victory Capital submitted a competing bid offering a 16% premium over Trian’s deal, but Janus Henderson’s board rejected it, citing fiduciary obligations to stakeholders, clients, and employees.
Market Context
Leveraged loans like this one are a common financing tool in acquisitions, as widely known in private equity. This deal occurs amid ongoing activity in large buyouts, with JPMorgan involved in multiple offerings this week, according to Private Equity Wire.
