Brookfield Asset Management Ltd. is nearing the finalization of a US$935 million loan to support its acquisition of air cargo specialist World Freight Co., according to sources familiar with the matter. This transaction represents the latest in a growing series of acquisition financings occurring across Asia.
Loan Details and Terms
The investment firm executed the loan documents last week, as disclosed by individuals who requested anonymity due to the private nature of the discussions. The loan will become effective upon the completion of Brookfield's purchase of World Freight from its current owners, EQT AB and PAI Partners SAS. The financing facility has a five-year term and is structured as covenant-lite, providing the borrower with increased flexibility through reduced ongoing performance requirements. Mitsubishi UFJ Financial Group Inc., Barclays PLC, and HSBC Holdings PLC are serving as arrangers and underwriters for the loan.
Market Context
This loan deal is part of a broader surge in acquisition funding across the Asia Pacific region, particularly in Australia. In March, Bain Capital LP secured a A$430 million (US$312 million) loan for its purchase of Perpetual Ltd.'s Australian wealth management unit. Simultaneously, a Macquarie Asset Management Pty-led group is pursuing a A$4.95 billion facility to finance its acquisition of Qube Holdings Ltd.
Despite this recent activity, the overall market remains subdued due to concerns over the Middle East conflict impacting energy supplies and global economic growth. According to Bloomberg-compiled data, acquisition buyout loans in Asia Pacific excluding Japan have declined nearly 61% year-over-year to US$4.95 billion so far this year.
World Freight Overview
Founded in 2004, World Freight invests in general sales and services agencies that specialize in air cargo. The company's portfolio includes more than 300 entities operating across 80 countries, managing over three million tons of cargo capacity annually for airline partners, as stated on its website.
Representatives for Brookfield and PAI declined to comment, while EQT stated it is not able to comment on market speculation. World Freight did not respond to a request for comment.
