Insurance benefits provider People Corporation is seeking about $500 million from private credit lenders for a holdco PIK note to support a dividend recapitalization, according to market sources. Goldman Sachs Asset Management is the company’s sponsor.
Pricing on the deal is being discussed at around 10-11%, but the note may price higher than that, sources said. The new debt would add roughly 2.5 turns of leverage to the company, which is currently levered at around 7x.
The debt would sit behind the company’s existing unitranche loan, which is priced at CORRA+525, according to the latest BDC filings. Ares Capital Corporation and Golub Capital BDC held the company’s first-lien debt as of Sept. 30.
The process was described as ongoing and competitive.
People Corp. has EBITDA of more than C$200 million, sources said.
Goldman Sachs Merchant Banking Division acquired the company in 2020 in a deal valued at approximately $1.1 billion.
Winnipeg, Canada-based People Corp. provides group benefits, group retirement and human resources services across organizations in Canada.
Goldman Sachs and Ares declined to comment. People Corp. and Golub did not reply to requests for comment.
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