Daily News: March 4, 2016

FS Originates $260MM Loan to Support New Mountain Acquisitions


Franklin Square Capital Partners originated a $260 million unitranche term loan to support the acquisition and combination of Trover Solutions and Equian by New Mountain Capital, 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, FS Investment Corporation II (FISCII) and FS Investment Corporation III (FISCIII), business development companies managed by affiliates of Franklin Square and sub-advised by GSO/Blackstone Debt Funds Management, an affiliate of GSO Capital Partners.

The combination of Equian and Trover brings together businesses with complementary expertise offering payment integrity solutions to commercial health plans and other insurance providers. The combination will be known as Equian going forward.

“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 CEO of FSIC, FSIC II and FSIC III.

Equian is a payment integrity platform providing solutions to facilitate and reconcile payments in the environments of healthcare, property and casualty insurance.

Franklin Square is a 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.