Private equity firms have begun securing improved financing terms for their best-performing assets, as debt market conditions begin to thaw after the financial crisis.

BC Partners and Electra Partners-backed boilermaker BDR Thermea, formerly known as Baxi, in February refinanced its leveraged bank debt at materially lower interest rates, according to two sources close to the matter. The crossover financing arrangement straddles the gap between investment-grade debt and sub-investment-grade or speculative grade, which is typically used for leveraged buyouts.