(Feb 19): Apollo Global Management and HPS Investment Partners joined KKR & Co to provide £1.3 billion (RM7.28 billion) of debt for Constellation Automotive Group, according to people with knowledge of the matter.

The used car marketplace initially took out a private unitranche loan from KKR, which then sold down parts of the debt to other private credit firms, said the people, asking not to be identified talking about the deal. Hayfin Capital Management is also participating, they said.

Constellation, owned by TDR Capital, is turning to private markets in a move that contrasts with a growing preference among companies for publicly traded markets over direct lenders. The borrower has more than £2 billion of debt outstanding, according to data compiled by Bloomberg. 

Apollo, KKR and Hayfin all declined to comment. HPS wasn’t immediately available for comment.

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