Franklin Square Announces Senior Secured Financing for Healthcare Staffing Services
$150 million financing supports Thomas H. Lee Partners' acquisition of majority stake in HSS
PHILADELPHIA, Oct. 12, 2015 /PRNewswire/ -- Franklin Square Capital Partners, the largest manager of business development companies (BDCs), announced the origination of a new $150 million senior secured loan to Healthcare Staffing Services, Inc. (HSS). Headquartered in Denver, CO, HSS is a leading healthcare staffing firm that specializes in providing nationwide "rapid response" nurse staffing services to healthcare facilities that have urgent needs for qualified nurses.
The financing was provided by FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II (FSIC II) and FS Investment Corporation III (FSIC III), BDCs managed by affiliates of Franklin Square and sub-advised by GSO / Blackstone Debt Funds Management LLC (GDFM), an affiliate of GSO Capital Partners LP (GSO). The senior secured loan facilitated a recapitalization of the company through which Thomas H. Lee Partners, L.P. (THL), a leading private equity investment firm, acquired a majority equity stake in HSS.
"This financing is a great example of our strategy to focus on investments at the top of the capital structure of leading companies. The scale of our platform enables speed and surety of execution, which we believe serves as a competitive advantage and attracts both borrowers and financial sponsors," said Michael C. Forman, Chairman and Chief Executive Officer of FSIC, FSIC II and FSIC III.
"We are excited to add the investment in HSS to the portfolios of the BDCs on the Franklin Square platform. HSS displays strong credit fundamentals with a history of revenue growth and strong cash flow generation," said Brad Marshall, Senior Managing Director at GSO.
About FSIC
FSIC is a publicly traded BDC focused on providing customized credit solutions to private middle market U.S. companies. FSIC seeks to invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market companies to achieve the best risk-adjusted returns for its investors. In connection with its debt investments, FSIC may receive equity interests such as warrants or options.
FSIC is advised by FB Income Advisor, LLC, an affiliate of Franklin Square, and is sub-advised by GDFM, an affiliate of GSO. GSO, with approximately $81.3 billion in assets under management as of June 30, 2015, is the credit platform of Blackstone, one of the world's leading managers of alternative investments. For more information, please visit www.fsinvestmentcorp.com.
About FSIC II and FSIC III
FSIC II and FSIC III are publicly registered, non-traded BDCs sponsored by Franklin Square. FSIC II and FSIC III focus primarily on investing in the debt securities of private companies throughout the United States, with the investment objectives of generating current income and, to a lesser extent, long-term capital appreciation for their investors. FSIC II and FSIC III are advised by affiliates of Franklin Square and are sub-advised by GDFM. For more information, please visit www.franklinsquare.com.
About Franklin Square
Franklin Square is a leading manager of alternative investment funds designed to enhance investors' portfolios by providing access to asset classes, strategies and asset managers that typically have been available to only the largest institutional investors. The firm's funds offer "endowment-style" investment strategies that help construct diversified portfolios and manage risk. Franklin Square strives not only to maximize investment returns but also to set the industry standard for best practices by focusing on transparency, investor protection and education for investment professionals and their clients.
Founded in Philadelphia in 2007, Franklin Square quickly established itself as a leader in the world of alternative investments by introducing innovative credit-based income funds, including the industry's first non-traded BDC. As of June 30, 2015, the firm managed approximately $16.8 billion in total assets, including $15.4 billion in BDC assets, making it the largest manager of BDCs. For more information, please visit www.franklinsquare.com.
Contact Information:
Franklin Square Media Team
[email protected]
215-495-1174
Jim Ballan
Senior Vice President,
Investor Relations & Capital Markets
[email protected]
267-439-4375
About Blackstone and GSO
Blackstone is one of the world's leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with over $300 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
GSO Capital Partners LP is the global credit and distressed investment platform of Blackstone. With approximately $81.3 billion of assets under management (as of June 30, 2015), GSO is one of the largest alternative managers in the world focused on the leveraged-finance, or non-investment grade related, marketplace. GSO seeks to generate attractive risk-adjusted returns in its business by investing in a broad array of strategies including mezzanine debt, distressed investing, leveraged loans and other special-situation strategies. Its funds are major providers of credit for small and middle-market companies and they also advance rescue financing to help distressed companies.
About Healthcare Staffing Services, Inc.
Healthcare Staffing Services is a complete healthcare staffing solution with expertise in supplying travel nurses on an urgent and crucial basis throughout the United States. Since 1989, the subsidiary companies of HSS have been providing quality healthcare services and professionals to facilities across the nation.
About Thomas H. Lee Partners, L.P.
Thomas H. Lee Partners, L.P. is one of the world's oldest and most experienced private equity firms. The firm invests in growth-oriented businesses, headquartered principally in North America, across three broad sectors: Consumer & Healthcare, Media & Information Services, and Business & Financial Services. Since its founding in 1974, THL has raised over $20 billion of equity capital and invested in more than 130 businesses with an aggregate purchase price of more than $150 billion. THL strives to build great companies of lasting value and generate superior investment returns. For more information, please visit www.thl.com.
Forward-Looking Statements and Important Disclosures
This press release may contain certain forward-looking statements, including statements with regard to the future performance or operations of FSIC, FSIC II, FSIC III or HSS. Words such as "believes," "expects," "projects" and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the filings FSIC, FSIC II and FSIC III make with the U.S. Securities and Exchange Commission. FSIC, FSIC II and FSIC III undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Individual investors and endowments may have different investment horizons, liquidity needs and risk tolerances. In addition, fees that may be incurred by an investor in a fund sponsored by Franklin Square may be different than fees incurred by an endowment investing in similar assets as those in which the funds invest.
SOURCE Franklin Square Capital Partners
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