Blackstone Inc. financed its acquisition of Champions Group with a more than $1 billion private credit loan, securing one of the tightest spreads at 4.5 percentage points over benchmark rates. The deal includes a delayed-draw term loan that would bring the company's leverage to 6.5 times earnings, according to people familiar with the transaction.

This financing structure reflects how buyout firms are increasingly turning to private credit markets amid concerns about artificial intelligence disruption in various sectors. The transaction values the Orange County, California-based residential services provider at about $2.5 billion. Champions handles essential home maintenance services like furnace repair and air conditioning maintenance, businesses considered relatively safe from AI disruption.

Blackstone's move demonstrates the continued appeal of essential service businesses in the current market environment. The tight pricing on the private credit facility suggests strong investor appetite for stable, non-tech exposed assets. This deal follows Blackstone's February agreement to acquire Champions from Odyssey Investment Partners, marking another strategic expansion in the residential services sector.