Franklin Square Provides Financing for New Mountain Capital's Acquisitions and Combination of Trover Solutions and Equian

Unitranche senior secured loan supports merger of insurance and healthcare payment leaders

Mar 03, 2016, 08:00 ET from Franklin Square Capital Partners

PHILADELPHIA, March 3, 2016 /PRNewswire/ -- Franklin Square Capital Partners, the largest manager of business development companies (BDCs), announced the origination of a $260 million unitranche term loan to support the acquisition and combination of Trover Solutions, Inc. and Equian LLC by New Mountain Capital, LLC (New Mountain), a New York-based alternative investments firm that manages approximately $15 billion of private equity, public equity and credit assets.

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, an affiliate of GSO Capital Partners LP (GSO).

The combination of Equian and Trover brings together businesses with complementary expertise offering payment integrity solutions to commercial health plans and other insurance providers. Equian is a leading payment integrity platform providing solutions to facilitate and reconcile payments in the complex environments of healthcare and property & casualty insurance. Equian has a wide range of solutions including pre-payment accuracy and containment and post-payment reconciliation and recovery services, generating hundreds of millions in savings for customers. Trover is a leading independent vendor of comprehensive cost containment services and software to the private healthcare payer and property & casualty insurance industries. Trover provides a wide range of cost containment solutions including insurance subrogation, overpayments recovery, clinical bill auditing and litigation management. The combination will be known as Equian going forward.

"Trover and Equian are a natural business combination with complementary offerings that we believe will create significant growth opportunities," commented Brad Marshall, Senior Managing Director at GSO.

"Our investment in Trover and Equian demonstrates our ability to provide portfolio companies and financial sponsors customized credit solutions quickly and efficiently without concern for syndication risks or delays," said Michael C. Forman, Chairman and Chief Executive Officer of FSIC, FSIC II and FSIC III.

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 September 30, 2015, the firm managed approximately $17.0 billion in total assets, including $15.7 billion in BDC assets, making it the largest manager of BDCs. For more information, please visit www.franklinsquare.com.

For information about FSIC, please visit www.fsinvestmentcorp.com. For information about FSIC II and FSIC III, visit www.franklinsquare.com.

Contact Information:

Franklin Square Media Team media@franklinsquare.com  215-495-1174

Jim Ballan Senior Vice President, Investor Relations & Capital Markets james.ballan@franklinsquare.com 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 $330 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. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

GSO Capital Partners LP is the global credit investment platform of Blackstone. With approximately $81 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, FSIC II, FSIC III, Trover or Equian. 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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