Ares Management arranged a larger $1.6bn loan to support Veritas Capital’s acquisition of Global Healthcare Exchange. The financing used a portability clause, allowing the debt to shift with ownership without refinancing. This feature helps sponsors sidestep underwriting costs and market risk during transitions.

The deal shows how private credit firms are outmaneuvering banks by offering adaptable terms. As competition grows, direct lenders like Ares are tailoring structures to meet private equity needs. Veritas’ purchase also includes backing from Temasek and Warburg Pincus.

Pricing adjustments lowered the margin to below 4.75 percentage points over the base rate, signaling more attractive terms. Industry experts say these flexible tools could reshape how sponsor-backed takeovers are financed going forward.