Increase of senior secured unitranche loan supports Swift’s merger with Air Energi
PHILADELPHIA, PA – Franklin Square Capital Partners (Franklin Square), the largest manager of business development companies (BDCs), announced an upsizing of its senior secured unitranche loan to support the merger of Air Energi Group Limited with Swift Worldwide Resources Limited, a portfolio company of the New York-based middle market private equity firm Wellspring Capital Management, to form Airswift Holdings Limited.
The financing was provided by FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III) and FS Energy and Power Fund (FSEP), BDCs managed by affiliates of Franklin Square and sub-advised by GSO Capital Partners LP (GSO) or its affiliate.
Airswift brings together two of the world’s leading names in energy recruitment to offer clients a truly global service and an unrivalled candidate pool across a broad spectrum of skills. With the largest geographic footprint in the industry, Airswift will offer a suite of workforce solutions on a worldwide basis, including recruitment for contract staff and permanent hires, resource consultancy, global mobility and managed solutions.
The merger of Swift and Air Energi combines businesses with complementary contracting expertise and key customers. “We believe the combined entity will help create a leading labor provider by expanding the geographical footprint and contractor network,” commented Valerie Kritsberg, Managing Director at GSO.
“Franklin Square’s unique access to capital across our BDC platform allows us to grow our investment in strong portfolio companies such as Swift,” said Michael C. Forman, Chairman and Chief Executive Officer of FSIC II, FSIC III and FSEP.
Specific terms of the deal were not disclosed.
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 December 31, 2015, the firm managed approximately $16.8 billion in total assets, including $15.5 billion in BDC assets, making it the largest manager of BDCs. For more information, please visit www.franklinsquare.com.
For information about FSIC II, FSIC III and FSEP, visit www.franklinsquare.com.
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 approximately $336 billion in assets under management, includes 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. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
GSO is the global credit investment platform of Blackstone. With approximately $79 billion of assets under management, 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.
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 II, FSIC III, FSEP or Swift. 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 II, FSIC III and FSEP make with the U.S. Securities and Exchange Commission. FSIC II, FSIC III and FSEP 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.