The latest $700
million incremental financing marks Golub Capital's
13th transaction with Risk Strategies since 2015
NEW 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.
Golub 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.
"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."
Golub 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.
"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.
About Golub Capital Sponsor Finance
Golub 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 syndicated credit facilities up to
$2 billion.
As of July 1, 2023, Golub Capital
had over 825 employees and over $60
billion of capital under management, a gross measure of
invested capital including leverage. The firm has lending offices
in Chicago, New York, San
Francisco and London. For
more information, please visit golubcapital.com.
About Risk Strategies
Risk Strategies is the 9th largest privately held US brokerage
firm offering comprehensive risk management advice, insurance and
reinsurance placement for property & casualty, employee
benefits, private client services, as well as consulting services
and financial & wealth solutions. With more than 30 specialty
practices, Risk Strategies serves commercial companies, nonprofits,
public entities, and individuals, and has access to all major
insurance markets. Risk Strategies has over 100 offices including
Boston, New York City, Chicago, Toronto, Montreal, Grand
Cayman, Miami, Atlanta, Dallas, Nashville, Washington DC, Los
Angeles and San
Francisco.
About Kelso & Company
Kelso & Company is one of the oldest and most established
firms specializing in private equity investing. Since 1980,
Kelso has invested approximately
$19 billion of equity capital in 140
transactions. Kelso was founded by
the inventor of the Employee Stock Ownership Plan (ESOP), and as a
result, the principles of partnership and alignment of interest
serve as the foundation of the firm's investment philosophy.
Kelso benefits from a successful
investment track record, deep sector expertise, a long-tenured
investing team, and a reputation as a preferred partner to
management teams and corporates. Kelso has significant experience investing in
healthcare and financial services. For more information, please
visit kelso.com.
Media Contact
press@golubcapital.com
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