HPS-Led Group Nears Deal to Buy $2.2 Billion of Stuck LBO Debt

HPS Investment Partners and a group of lenders, including Apollo Global Management Inc., are snapping up over $2.2 billion of buyout debt that had been stuck on bank balance sheets since the Trump Administration’s tariff proposals disrupted markets earlier this year, according to people familiar with the matter.

The financing, which was tied to a buyout by Canadian auto parts maker ABC Technologies Holdings Inc., includes a $1.6 billion private credit loan led by HPS as well as a $675 million last-out term loan, said the people, who requested anonymity to discuss private deliberations. Apollo, the sponsor for ABC Technologies, is set to take a portion of the last-out loan, they said.