2023-08-01 14:49:47 ET
New Relic's ( NYSE: NEWR ) sale price was likely a much bigger factor in its talks with private firms Francisco and TPG Inc. ( TPG ) than debt financing.
It appears that New Relic "budged" more than the PE firms in the negotiations, according to an Axios report, which cited unidentified sources, a day after New Relic ( NEWR ) announced its $87 per share agreement to sell itself to the PE firms.
The debt for the $6.5 billion deal came from private credit markets, including Blue Owl ( OBDC ), Golub Capital ( GBDC ), and Sixth Street, according to the report.
The Axios report comes after Reuters reported in late May that talks with the PE firms had ended after failing to secure enough debt financing to meet the company's valuation expectations.
The $87 a share comes after a Truist analyst in May said that the company could see $88–$100 a share i n a possible takeover, and an RBC analyst upgraded the shares in late May to outperform with a $95 price target.
More on New Relic
- New Relic: A Great Way To Cash Out
- New Relic: The Impact Of Revenue Growth Deceleration
- New Relic: Full Steam Ahead; Buy With Confidence
- New Relic: Takeover Speculation Still Leaves Room For Upside Into Earnings
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New Relic may have agreed to buyer demands on deal - report