Ares-Led Group Offers $1.95 Billion Private Loan for Baxter Unit

A group of private credit lenders led by Ares Management Corp. has agreed to provide $1.95 billion of financing for the buyout of Baxter International Inc.’s contract medical manufacturing unit, according to people with knowledge of the matter.

The group, which includes Blackstone Inc., Blue Owl Capital Inc. and HPS Investment Partners, edged out investment banks to arrange financing for the transaction, said the people, who asked not to be identified because terms are not public.

The deal includes a $1.6 billion unitranche loan that pays interest of six percentage points over the Secured Overnight Financing Rate ...