Investing.com -- Apollo Global Management (NYSE: APO ) Inc. is utilizing private credit to fund its purchase of electric utility PowerGrid Services from Sterling Group. This information comes from Bloomberg, citing sources who wish to remain anonymous due to the private nature of the transaction.

The nearly $1 billion debt package is being financed by Brookfield Asset Management (TSX: BAM ), Blackstone (NYSE: BX ) Inc., and JPMorgan Chase & Co. (NYSE: JPM )’s direct lending businesses. These funds will be used to support Apollo’s estimated $2 billion acquisition of PowerGrid.

The financing package includes a $650 million term loan, a $200 million delayed-draw term loan, and a $125 million revolving line of credit, according to the sources.

PowerGrid will be required to pay an interest rate of 4.75 percentage points above the US benchmark on the larger term loan. This rate could potentially decrease by 0.25 percentage points over time. The loan, which is expected to mature in seven years, will be issued at a discount of 99 cents on the dollar.

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