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FS Investments BDCs Close on Nearly $1 Billion of Middle Market Commitments in the Third Quarter

FS Investments, the largest manager of BDCs – formerly known as Franklin Square Capital Partners, announced that its business development company direct lending platform committed approximately $988 million in senior secured loans and other debt and equity financing to middle market companies in the third quarter of 2016, bringing its year-to-date total originations to more than $2.2 billion. New directly originated investments during the quarter were made in support of nine portfolio companies headquartered in seven U.S. states.

“Our ability to customize financing solutions to a company’s specific needs delivers a unique value to those businesses and, ultimately, our investors,” said Michael Forman, chairman and chief executive officer of FS Investments. “In several cases, we upsized our financing for existing portfolio companies, where the added capital helps those companies expand their operations.”

Newly committed capital was provided by five BDCs managed by affiliates of FS Investments and sub-advised by GSO Capital Partners LP or its affiliate: FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II, FS Investment Corporation III, FS Investment Corporation IV and FS Energy and Power Fund.

FS Investments’ directly originated transactions included investments in the following companies in the third quarter:

North Haven Cadence Buyer Inc. (dba: Cadence Education)

FSIC, FSIC II, FSIC III and FSIC IV provided a new senior secured unitranche and equity commitment to Cadence Education, a Scottsdale, AZ-based provider of private pre-kindergarten and elementary childcare and education services. The company is among the largest providers of private childcare and education services in the country. The new financing supported Morgan Stanley Capital Partners’ acquisition of the company from Audax Partners.

Transplace Holdings, Inc.

FSIC, FSIC II and FSIC III upsized their senior secured unitranche commitment to Transplace Holdings, a Frisco, Texas-based logistics and transportation management company. The incremental commitment financed a strategic acquisition. Transplace is a portfolio company of Greenbriar Equity Group.

FS Investments was founded in 2007 and is headquartered in Philadelphia with offices in Orlando and Washington, DC. The firm currently manages six funds with more than $18 billion in assets under management as of September 30, 2016 and co-manages an operating company. Its affiliated broker-dealer, FS Investment Solutions distributes its offerings.

For more FS Investments news, visit their directory page here.