ranklin Square Capital Partners, the largest manager of business development companies 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, Inc. (Fox) and Hybrid Apparel (Hybrid) by Altamont Capital Partners (Altamont). 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.
"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.
Headquartered in Irvine, CA, Fox is the most recognized and best-selling brand of motocross apparel in the world today. Through sponsoring and working closely with the best riders in the history of the sport – riders such as Ricky Carmichael, James Stewart, Damon Bradshaw, Rick Johnson, Mark Barnett, Doug Henry, Jeremy McGrath and Steve Lamson – Fox has researched and developed race clothing that provides riders with maximum protection and performance and freedom of movement.
Headquartered in Cypress, CA, Hybrid is a leading supplier of branded, licensed and private label apparel. Hybrid designs, merchandises, develops, sources, produces and distributes apparel to all tiers of distribution, including department, national chain and specialty stores. Hybrid is a full service apparel house, specializing substantially in all categories and classifications of apparel including knits, woven tops, bottoms, tees and accessories.
Franklin Square and GSO were represented in the transaction by King and Spalding LLP. Altamont Capital Partners was represented by Ropes & Gray LLP.
Franklin Square is a leading 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. The firm's funds offer "endowment-style" investment strategies that help construct diversified portfolios and manage risk. Franklin Square strives not only to maximize investment returns but also to set the industry standard for best practices by focusing on transparency, investor protection and education for investment professionals and their clients.
Founded in Philadelphia in 2007, Franklin Square quickly established itself as a leader in the world of alternative investments by introducing innovative credit-based income funds, including the industry's first non-traded BDC. The firm managed approximately $13.6 billion in assets as of September 30, 2014. For more information, please visit www.franklinsquare.com.
Blackstone is one of the world's leading investment and advisory firms with approximately $284 billion in assets under management as of September 30, 2014. It seeks to create positive economic impact and long-term value for investors, the companies it invests in, the companies it advises and the broader global economy. Blackstone does this through the commitment of extraordinary people and flexible capital.