Blackstone Eyes Junk Debt to Replace Emerson Private Credit Loan

Blackstone Inc. is looking to refinance $5.5 billion of debt for a unit of Emerson Electric Co., just months after the buyout titan turned to direct lenders to help fund the deal as banks pulled back from lending.

The private equity firm has hired Royal Bank of Canada and Barclays Plc to raise debt from investors in the leveraged finance market, according to people familiar with the matter. The deal is currently being shown to investors to garner feedback and gauge interest, they added.

Blackstone may significantly lower borrowing costs for the deal, and the loan component of the financing ...