The United States Tennis Association is in talks with institutional investors to borrow at least $400 million in private credit to refurbish Arthur Ashe Stadium in New York. Lenders are offering an average maturity of 17 years with a projected single A- investment-grade rating, people familiar with the matter said. A USTA representative did not respond to a request for comment.

The broader renovation of the Billie Jean King National Tennis Center carries an estimated $1.1 billion price tag, according to Fitch Ratings. USTA's National Tennis Center Inc. plans to fund $850 million through debt, including a $200 million revolving credit facility. The project would add roughly 2,000 seats to the world's largest tennis venue.

Chick-fil-A and Live Nation have recently tapped the same private placement market, which connects investment-grade borrowers with life insurance firms and other institutional investors. Private credit commands a premium over public debt but allows longer maturities and more tailored terms.