Daily News: February 2, 2018

Capital One Closes $1B+ Unitranche Healthcare Commitments in 2017


Just one year after its initial launch, Capital One’s unitranche loan program, ULTra, closed more than $1 billion in commitments to borrowers in the healthcare industry in 2017. The program, with HPS Investment Partners as its strategic co-investor, helps borrowers obtain first lien unitranche loans without a rating agency or a syndication process.

“We are pleased to announce that we have expanded this program beyond the healthcare market to borrowers in a variety of industries where Capital One provides leveraged finance,” said Darren Alcus, president of Corporate Banking at Capital One. “In this dynamic environment, a seamless, one-stop financing solution like ULTra can give private equity sponsors and borrowers a significant advantage.”

A unitranche loan blends senior and junior debt pricing and terms into a single first lien debt facility, rather than creating two classes of debt and coordinating among multiple lenders. This approach increases certainty of execution, and borrowers benefit from the simplicity of managing a single credit facility.

HPS Investment Partners is a global investment firm with a focus on non-investment grade credit. Established in 2007, HPS has approximately 115 investment professionals and more than 280 total employees, and is headquartered in New York with 11 additional offices globally, as of January 1, 2018.