Franklin Square Capital Partners has provided a $150 million senior secured loan to Healthcare Staffing Services (HSS) to finance its acquisition by Thomas H. Lee Partners. HSS was a portfolio company of healthcare specialist investor Altaris Capital Partners.
Healthcare Staffing Services is a provider of healthcare staffing with a specialization in providing nationwide “rapid response” nurse staffing services to healthcare facilities that have urgent needs for qualified nurses, generally for multiple weeks at a time. HSS operates under the US Nursing and Fastaff travel nursing brands, both of which it acquired in February 2014. The company is led by Ray Marcy, Executive Chairman, and Allison Beer, Chief Executive Officer. HSS was founded in 1989 and is based in Denver (www.fastaff.com) (www.usnursing.com).
“This financing is a great example of our strategy to focus on investments at the top of the capital structure of leading companies. The scale of our platform enables speed and surety of execution, which we believe serves as a competitive advantage and attracts both borrowers and financial sponsors,” said Michael Forman, Chairman and Chief Executive Officer of Franklin Square.
Franklin Square, headquartered in Philadelphia, is a manager of alternative investment funds. As of June 30, 2015, the firm managed approximately $16.8 billion in total assets, including $15.4 billion in BDC assets (www.franklinsquare.com).
“We are excited to add the investment in HSS to the portfolios of the BDCs on the Franklin Square platform. HSS displays strong credit fundamentals with a history of revenue growth and strong cash flow generation,” said Brad Marshall, Senior Managing Director at GSO.
The $150 million senior secured loan was formally 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 (GDFM), an affiliate of GSO Capital Partners LP (GSO).
© 2015 PEPD • Private Equity’s Leading News Magazine • 10-13-15
