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Franklin Square BDCs Provide Acquisition Funding

Franklin Square Capital Partners, the largest manager of business development companies, originated a new senior secured loan and equity co-investment to help finance the acquisition by Audax Private Equity, a leading private equity investment firm, of Justrite Manufacturing Co. LLC. Headquartered in Des Plaines, Illinois, Justrite is a leading designer and manufacturer of safety products used in the handling and storage of flammable and hazardous liquids.

“This transaction is indicative of our ability to provide customized financing solutions to leading middle market companies that also provide economic upside with credit protections to our investors. In addition, we are pleased to again partner with a proven sponsor like Audax,” said Michael C. Forman, chairman and chief executive officer of FSIC, FSIC II and FSIC III.

The financing was provided by FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II and FS Investment Corporation III. All are BDCs managed by affiliates of Franklin Square and sub-advised by GSO / Blackstone Debt Funds Management LLC.

“Justrite has a diverse product portfolio and customer base. Coupled with its steady growth and stable cash flow generation, we think this represents another strong investment opportunity for the Franklin Square BDC portfolios,” said Brad Marshall, senior managing director at GSO.

Franklin Square is a 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. 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.


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