Business
Golub Capital Increases Risk Strategies Unitranche to $4.45 Billion
The latest $700 million incremental financing marks Golub Capital's 13th transaction with Risk Strategies since 2015 NEW YORK, Aug. 22, 2023 /PRNewswire/ --
About this update from Golub Capital Bdc, Inc.
[{"type":"text","content":"The latest $700 million incremental financing marks Golub Capital's 13th transaction with Risk Strategies since 2015\nNEW YORK, Aug. 22, 2023 /PRNewswire/ -- Golub Capital acted as Administrative Agent, Lead Arranger and Joint Bookrunner on a $700 million delayed draw term loan for Risk Strategies, increasing the company's unitranche facility to $4.45 billion. Risk Strategies, a leading U.S. insurance broker, is a portfolio company of North American-focused middle market private equity firm, Kelso & Company.\n\n \n \n \n \n \n \n\n \nGolub Capital helped the borrower achieve an optimal result by agreeing to hold a meaningful portion of the incremental loan, adding to its already significant position in the credit and leading a robust syndication process for the remainder. The Firm generated an oversubscribed book, allowing the transaction to be upsized from $500 million to $700 million while also tightening terms from initial talk.\n\"The unitranche market is open and private equity players value the scalability offered by unitranche facilities for their buy-and-build strategies,\" said Chip Cushman, Managing Director at Golub Capital. \"We are proud to lead one of the largest unitranche facilities in the market today and to offer flexible financing solutions that support the long-term growth of high-quality borrowers.\"\nGolub Capital started its relationship with Risk Strategies in 2015, when it was a $30 million EBITDA business. In 2019, the market-leading direct lender acted as Administrative Agent on a $1.64 billion unitranche facility to refinance Risk Strategies' existing debt facilities. Since then, the unitranche has more than doubled in size.\n\"Golub Capital has consistently been a reliable financing partner, providing the balance sheet capabilities and capital markets expertise that continues to support Risk Strategies' growth,\" said Michael Nichols, Partner and Managing Director at Kelso & Company.\nAbout Golub Capital Sponsor Finance\nGolub Capital is a market-leading, award-winning direct lender and experienced credit asset manager. We specialize in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. The firm's Direct Lending group provides buy-and-hold financing for sponsor-backed transactions with hold positions up to $700 million and arranges syndica...