Daily News: December 22, 2014

Franklin Square, GSO Finance Fox Head Recap

Franklin Square Capital Partners, in partnership with GSO Capital Partners, the credit division of Blackstone, announced the origination of a senior secured loan to finance the acquisition and recapitalization of Fox Head and Hybrid Apparel by Altamont Capital Partners. Under the terms of the investment, Franklin Square also participated as an equity co-investor alongside Altamont.

The investments were made through FS Investment Corporation II (FSIC II) and FS Investment Corporation III (FSIC III), BDCs managed by Franklin Square and sub-advised by GSO. FSIC II and FSIC III focus primarily on investing in the debt securities of private U.S. middle market companies.

Franklin Square and GSO were represented in the transaction by King and Spalding. Altamont Capital Partners was represented by Ropes & Gray.

“This is our third transaction with GSO and Franklin Square and we have built a strong, successful relationship,” said Kristin Johnson, director of Capital Markets and Business Development of Altamont. “We are pleased with the relationship, expect continued success and look forward to future opportunities to collaborate.”

“For a second time this year, GSO is proud to partner with Altamont on a strong investment opportunity,” commented Dan Smith, senior managing director at GSO.

“We are excited to work with Altamont in bringing together the power of Fox’s iconic brand with Hybrid’s distribution expertise,” added Michael C. Forman, chairman and chief executive officer of FSIC II and FSIC III.

Irvine, CA-based Fox is the most recognized and best-selling brand of motocross apparel in the world.

Cypress, CA-based Hybrid is a supplier of branded, licensed and private label apparel.