HPS Beats Banks as €1.5 Billion Deal Goes to Private Credit

Private credit firm HPS Investment Partners will provide a €1.5 billion ($1.65 billion) loan package to help fund the buyout of Constantia Flexibles GmbH, dealing a setback to banks that had also been competing for the financing.

The loan will fund the acquisition of the maker of packaging material by One Rock Capital Partners, and will rank among the largest private loans in Europe this year, according to people with knowledge of the matter.

French investment group Wendel SE started talks on the sales process last year, and in May, banks were working on debt financing for potential bidders ...