Private Credit Lenders in Talks to Provide $1.3bn for L Catterton's Fullscript Buyout

✦ Meridian Analysis

L Catterton and co‑investor Altas Partners have signed a deal to acquire a majority stake in Fullscript, the healthcare‑technology platform previously owned by HGGC and Snapdragon Capital Partners. The acquisition, announced in September, is slated to close on 10 November, and a consortium of private‑credit lenders is now in talks to provide $1.3 billion of debt financing. The financing structure resembles a leveraged buyout in which the equity sponsors rely on direct lenders rather than a traditional syndicated loan market, after preliminary talks with leveraged‑loan investors failed to generate sufficient demand. Morgan Stanley’s original underwriting at a spread of four percentage points above benchmark has been superseded by the private‑credit approach, with Apollo Global Management and Blue Owl Capital already holding existing private‑credit debt on Fullscript at a 4.5‑percentage‑point spread. Meridian reported that Altas Partners and LCatterton are the equity parties behind the Fullscript transaction. Deal participants have not disclosed the purchase price, valuation multiples or the exact composition of the financing package. Confirmation of regulatory clearances and the final financing terms remain pending, and those details will shape the ultimate risk profile of the transaction.

The Meridian Weekly