Private Lenders Set Yield on $5 Billion Zendesk Loans at 8.5%

A club of private-credit firms that provided close to $5 billion of financing to help fund the buyout of Zendesk Inc. set pricing on the debt at 6.5 percentage points over the Secured Overnight Financing Rate, according to people with knowledge of the matter.

That equates to a yield of about 8.5% on the $3.75 billion funded loan and the $850 million delayed-draw loan, according to Bloomberg calculations and one of the people, who asked not to be identified discussing a private transaction. The debt package for the buyout led by Hellman & Friedman and Permira also includes a $350 ...