By Elena Vardon


Lloyds Bank and Oaktree Capital Management are launching a new direct lending facility through which they expect to deploy over one billion pounds ($1.30 billion) in the next three years.

The British lender said its structured debt finance team is partnering with the U.S. asset manager's European private debt platform to support U.K. middle-market sponsor-backed borrowers with between GBP10 million and GBP75 million in earnings before interest, taxes, depreciation and amortization.

Through the partnership, the groups will provide clients with debt solutions for new buyouts and refinancings with term debt, acquisition and working capital facilities, it said Thursday.

Clients will be able to finance larger transactions without additional lenders. The multi-year partnership's combined single name hold capacity will be of GBP175 million per transaction, it said.

"We have a proven track record of financing sponsor clients' transactions in the Mid-Market, and by partnering with Oaktree, we can provide a market-leading one-stop solution that will allow us to scale that support while maintaining our disciplined approach," Lloyds Bank's head of structured finance and syndicate James Ranger said in a statement.


Write to Elena Vardon at elena.vardon@wsj.com


(END) Dow Jones Newswires

07-18-24 0632ET