> which underwriters certainly would have looked at.
I am not sure that is for certain, with these private debt "facilities" (as the OP calls them). Seems like that's a big question.
Related (I am aware does not answer the question), the OP suggests this credit was pursued precisely because "increased regulations and capital requirements made it more challenging for traditional banks to issue certain types of loans."
A credit facility is a lengthy and detailed agreement that certainly includes checking for other debt and checking for liens on the collateral. Liens are usually documented by a UCC filing which is public information.
Traditional banks are required to conduct deeper reviews, often looking at UCC filings, lien searches, and bank statements. Private debt lenders may not apply the same level of scrutiny unless explicitly required by their internal policies
>"increased regulations and capital requirements made it more challenging for traditional banks to issue certain types of loans."
Basel III requirements post-GFC made it expensive for banks to hold riskier loans so private credit was born.
I am not sure that is for certain, with these private debt "facilities" (as the OP calls them). Seems like that's a big question.
Related (I am aware does not answer the question), the OP suggests this credit was pursued precisely because "increased regulations and capital requirements made it more challenging for traditional banks to issue certain types of loans."