**DAZN Group Considers Increasing Loan Interest Margin for Foxtel Acquisition**
**Meta Description:** DAZN Group is exploring a higher interest margin on its acquisition loan for Foxtel to attract institutional lenders amid rising private credit interest.
**URL Slug:** dazn-foxtel-acquisition-loan-interest-margin
**DAZN Group Considers Increasing Loan Interest Margin for Foxtel Acquisition**
Banks involved in financing DAZN Group Ltd.’s acquisition of Australian pay-television company Foxtel Management Ltd. are contemplating raising the interest margin on the associated loan to attract institutional investors. This move comes as the underwriters of a A$1.8 billion ($1.1 billion) acquisition loan aim to increase the margin on a A$600 million five-year tranche by 75 basis points, bringing it to 500 basis points above the benchmark Bank Bill Swap Bid Rate.
Sources familiar with the situation, who requested anonymity, indicated that private credit investors are among the institutional players the banks are targeting. The loan’s underwriters include prominent financial institutions such as Bank of America Corp., Citigroup Inc., and Commonwealth Bank of Australia Ltd. While Bank of America and Citigroup have refrained from commenting, representatives from Commonwealth Bank and DAZN were not immediately available for further insights.
Private credit providers are becoming an increasingly significant source of funding for borrowers in Australia, albeit at higher interest rates compared to traditional banks. Recent examples of firms utilizing this sector include Oaktree Capital Management LP, which secured a A$325 million facility from Ares Management Corp. and Barings LLC for its acquisition of AZ Next Generation Advisory, and Family Doctor Pty., which obtained a A$300 million private loan from KKR Group Co.
The tranche under consideration for re-pricing is part of a broader financing package for DAZN, which also includes a A$600 million four-year revolving credit facility and a A$600 million four-year term loan. DAZN successfully completed the acquisition of Foxtel last week, marking a significant milestone for the streaming platform.
**FAQ**
**What is the significance of DAZN’s loan interest margin increase?**
Increasing the loan interest margin may help DAZN attract more institutional investors, particularly in a competitive funding environment where private credit is gaining traction.
