UK-based testing company Phenna Group has left investors feeling conflicted over its £845m-equivalent dual tranche TLB (euros and sterling) and delayed draw term loan (DDTL) deal. Lenders flagged concerns such as weak cash flow due to its acquisition-heavy past, and its UK concentration, but appreciated its strong market position and high recurring sales.

The new TLBs, alongside an equity injection of £130m, will refinance existing debt, finance pending acquisitions of £80m, deferred consideration payable of £26m (the partial cost of previous acquisitions) and transaction expenses.

The company’s existing private credit debt funded its buyout by Oakley Capital in 2022.