The third paragraph of this story has been updated to include an additional new lender to the company.

Consumer Cellular has tapped HPS Investment Partners to lead a dividend recap in the private credit market, sources told 9fin.

The funding consists of a first lien loan and preferred equity tranche, both of which are led by HPS, sources said.

Blackstone and PSP Investments’ credit arms are also participating in the deal, sources added.

The new investment will repay Consumer Cellular’s broadly syndicated debt and fund a dividend to sponsor GTCR.

Consumer Cellular provides postpaid wireless services to over 4 million customers, according to its website, with a focus on users over 50 years of age. GTCR has owned the company since 2020.

All told, Consumer Cellular’s incumbent debt stack consists of over $2.7bn in syndicated first lien debt, most of which comes due in December 2027, and a $95m second lien term loan.

The company last tapped the debt market in February 2024 for a Bank of America-led $500m term loan B priced at SOFR+400bps and due 2029, also to back a dividend.

All outstanding tranches are currently quoted around par.

HPS, Blackstone and PSP Investments declined to comment. Consumer Cellular and GTCR did not respond to requests for comment.