Apollo is in advanced talks to provide a $574 million private debt package to refinance Eolo, the Italian broadband operator controlled by Partners Group. The deal would replace the company's existing debt structure ahead of maturity in 2028. Eolo faces pressure from its current obligations, which include $430 million in high yield bonds and a $160 million credit facility.

This transaction reflects a broader shift among lower-rated borrowers toward private credit markets. Companies are increasingly seeking direct lenders to avoid volatile public bond markets, where pricing uncertainty can complicate financing. Eolo's bonds recently traded at roughly 86% of face value, indicating investor concerns about the company's ability to manage its obligations through traditional channels.

Partners Group acquired a majority stake in Eolo in 2021 for over $1.4 billion and has since injected additional equity to fund network expansion. Moody's maintains a B3 rating on the company, citing its strong market position but also flagging high leverage and significant capital expenditure requirements for network growth.

The refinancing would give Partners Group breathing room to execute its expansion strategy without facing the 2028 maturity wall. Consolidating debt under a single private lender simplifies the capital structure and provides operational flexibility during a period of intensive network investment.