Gordon Brothers Group and BlackRock Kelso Capital Corporation Launch Gordon Brothers Finance Company
As a portfolio company of BlackRock Kelso, GBFC will continue its focus on asset-based lending. In addition, GBFC and Gordon Brothers Group have entered into a long-term, exclusive arrangement to continue to provide GBFC with access to the deep industry knowledge and valuation expertise of the entire Gordon Brothers Group platform.
BlackRock Kelso invested approximately $94.6 million in the transaction,
which consisted of $71.0 million of newly-issued floating rate senior
notes yielding 12.0%,
The existing management and investment teams of GB Credit Partners, led by Patrick J. Dalton, President & Chief Executive Officer, have joined Gordon Brothers Finance Company. With the benefit of their expertise and a focus on asset-based investments, GBFC expects to originate attractive financing opportunities irrespective of economic or debt capital market conditions. BlackRock Kelso expects that its investment in GBFC will be accretive to net investment income.
BlackRock Kelso funded its investment in GBFC using available liquidity, including borrowings under BlackRock Kelso’s existing credit facilities. The investments by BlackRock Kelso and Gordon Brothers Group provide the newly-formed company with significant growth capital. BlackRock Kelso expects its investment in GBFC to generate a cash yield consistent with other assets in its portfolio.
“The creation of Gordon Brothers Finance Company puts us in an excellent capital position to grow our lending platform. We are now able to offer our middle market clients an even broader set of unique lending solutions utilizing our established network for originating loans and our proprietary valuation capabilities,” said Patrick Dalton, President & Chief Executive Officer of GBFC.
“We are excited to be extending the capabilities of our company with a
portfolio investment dedicated to asset-based lending. The GBFC team has
developed a highly regarded track record of originating complex
asset-based loans and built its lending business by leveraging Gordon
Brothers Group’s unique proprietary research capabilities, experience,
and global relationships,” noted
“Working with BlackRock Kelso has created an exceptional lending
platform with an expanded capital base. We look forward to working
closely with the GBFC management team and BlackRock Kelso to
grow the business by providing access to our relationships
and valuation expertise,” stated
About BlackRock Kelso Capital Corporation
Since its formation in 2005, BlackRock Kelso Capital Corporation has provided middle market companies with flexible financing solutions, including senior and junior secured, unsecured and subordinated debt securities and loans, as well as common and preferred equity securities. BlackRock Kelso’s strategy is to provide capital to meet its client’s current and future needs across this spectrum, creating long-term partnerships with growing middle-market companies. For more information please visit www.blackrockkelso.com.
About
About
Founded in 1903,
Source: BlackRock Kelso Capital Corporation
BlackRock Kelso Capital Corporation
Investor:
Corinne
Pankovcin, 212-810-5798
or
Press:
Brian Beades,
212-810-5596