Golub Capital acted as administrative agent, lead arranger and joint bookrunner on a $700 million delayed-draw term loan for Risk Strategies, increasing the company’s unitranche facility to $4.45 billion. Risk Strategies, an insurance broker, is a portfolio company of North American-focused middle market private equity firm, Kelso & Company.
Golub Capital helped the borrower achieve an optimal result by agreeing to hold a meaningful portion of the incremental loan, adding to its already significant position in the credit and leading a robust syndication process for the remainder. The firm generated an oversubscribed book, allowing the transaction to be upsized from $500 million to $700 million while also tightening terms from initial talk.
“The unitranche market is open and private equity players value the scalability offered by unitranche facilities for their buy-and-build strategies,” Chip Cushman, managing director at Golub Capital, said. “We are proud to lead one of the largest unitranche facilities in the market today and to offer flexible financing solutions that support the long-term growth of high-quality borrowers.”
Golub Capital started its relationship with Risk Strategies in 2015, when it was a $30 million EBITDA business. In 2019, the direct lender acted as administrative agent on a $1.64 billion unitranche facility to refinance Risk Strategies’ existing debt facilities. Since then, the unitranche has more than doubled in size.
“Golub Capital has consistently been a reliable financing partner, providing the balance sheet capabilities and capital markets expertise that continues to support Risk Strategies’ growth,” Michael Nichols, partner and managing director at Kelso & Company, said.
