HPS Heads $4.1B Private Credit Deal for Consumer Cellular Refinancing

HPS Investment Partners has spearheaded a substantial $4.1 billion private credit financing package for Consumer Cellular Inc., a leading U.S. mobile virtual network operator. This deal aims to refinance the company’s existing syndicated loans and provide a dividend to its private equity owner, GTCR.

The financing structure comprises a $3.4 billion term loan, a $200 million revolving credit facility, and $525 million in preferred equity. This significant transaction underscores the growing role of private credit firms in large-scale corporate financing, especially as traditional banks retreat from such deals.

Consumer Cellular, known for its affordable mobile services for senior citizens, has experienced rapid growth in recent years. The company's success has attracted significant investment, with GTCR acquiring a majority stake in 2020. This latest financing round not only strengthens Consumer Cellular’s capital structure but also facilitates a return on investment for GTCR.

HPS Investment Partners, which manages over $148 billion in assets, continues to lead in the expanding private credit market. The firm’s leadership in this deal demonstrates its ability to structure large, flexible financing solutions for companies operating outside the traditional banking ecosystem.

This transaction reflects a broader trend in the financial industry where private lenders are increasingly stepping in to offer custom capital solutions. As banks become more conservative, firms like HPS are filling the gap, supporting the growth of businesses like Consumer Cellular with innovative financial tools.