GREENWICH, CT, Oct. 1, 2014 (GLOBE NEWSWIRE) -- Fifth Street Finance Corp. (NASDAQ:FSC) ("FSC") and Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR) ("FSFR") today announced they have co-invested in a $195 million one-stop financing facility and an equity co-investment in conjunction with Veritas Capital's ("Veritas") acquisition of BeyondTrust, Inc. ("BeyondTrust"). BeyondTrust is a cybersecurity software provider delivering an essential solution to securing critical information technology infrastructure. It is the only provider of context-aware solutions for privilege and vulnerability management in the cybersecurity industry. The financing facility consists of a first lien term loan along with a revolver that was undrawn at close. Fifth Street Management LLC, FSC's and FSFR's investment adviser, served as Administrative Agent for the transaction.
The BeyondTrust transaction represents the Fifth Street platform's third transaction with Veritas. Veritas is a leading private equity firm based in New York, NY with a focus on investing in middle market companies supported largely by a government-related customer base in industries such as aerospace & defense, communications, education, energy, government services, healthcare, national security and technology.
The transaction marks the first time that FSC and FSFR have co-invested under the exemptive order recently granted by the Securities and Exchange Commission. The ability to co-invest with each other, as well as certain other private funds managed by Fifth Street Management, provides the Fifth Street platform with greater scale, investment flexibility and the ability to hold up to $250 million per transaction.
"We were delighted to be chosen from among the lenders who contended for this deal," said Ivelin M. Dimitrov, Fifth Street Management's Chief Investment Officer, adding, "By optimizing individual investment sizes, we can support our private equity sponsor clients more efficiently, streamlining the process while enhancing certainty for them."
About Fifth Street Finance Corp.
Fifth Street Finance Corp. is a leading specialty finance company that provides custom-tailored financing solutions to small and mid-sized companies, primarily in connection with investments by private equity sponsors. The company originates and invests in one-stop financings, first lien, second lien, mezzanine debt and equity co-investments. FSC's investment objective is to maximize its portfolio's total return by generating current income from its debt investments and capital appreciation from its equity investments. The company has elected to be regulated as a business development company and is externally managed by Fifth Street Management LLC, an SEC-registered investment adviser and leading alternative asset manager with over $5 billion in assets under management. With a track record of more than 16 years, Fifth Street's nationally recognized platform has the ability to hold loans up to $250 million and structure and syndicate transactions up to $500 million. Fifth Street received the 2014 ACG New York Champion's Award for "Senior Lender Firm of the Year" and was named both 2013 "Lender Firm of the Year" by The M&A Advisor and "Lender of the Year" by Mergers & Acquisitions. FSC's website can be found at fsc.fifthstreetfinance.com.
About Fifth Street Senior Floating Rate Corp.
Fifth Street Senior Floating Rate Corp. is a specialty finance company that provides financing solutions in the form of floating rate senior secured loans to mid-sized companies, primarily in connection with investments by private equity sponsors. FSFR's investment objective is to maximize its portfolio's total return by generating current income from its debt investments while seeking to preserve its capital. The company has elected to be regulated as a business development company and is externally managed by Fifth Street Management LLC, an SEC-registered investment adviser and leading alternative asset manager with over $5 billion in assets under management. With a track record of more than 16 years, Fifth Street's nationally recognized platform has the ability to hold loans up to $250 million and structure and syndicate transactions up to $500 million. Fifth Street received the 2014 ACG New York Champion's Award for "Senior Lender Firm of the Year" and was named both 2013 "Lender Firm of the Year" by The M&A Advisor and "Lender of the Year" by Mergers & Acquisitions. FSFR's website can be found at fsfr.fifthstreetfinance.com.
About Veritas Capital
Veritas Capital is a leading private equity firm that invests in companies that provide critical products and services to government and commercial customers worldwide including those operating in aerospace & defense, healthcare, technology, national security, communications, energy and education. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means. For more information on Veritas Capital and its current and past investments, visit www.veritascapital.com.
BeyondTrust empowers cybersecurity-conscious organizations with Context-Aware Security Intelligence, delivering Privileged Account Management and Vulnerability Management solutions that reduce IT security risks and simplify compliance reporting across heterogeneous IT environments.
BeyondTrust's customers not only mitigate user-based risks arising from misuse of system or device privileges, but also identify and remediate asset vulnerabilities targeted by cyber-attacks. As a result, they address both internal and external threats, while making every device – physical, virtual, mobile and cloud – as secure as possible. BeyondTrust solutions are unified under the BeyondInsight IT Risk Management Platform, which provides IT and security teams a single, contextual lens through which to view user and asset risk.
More than half of the companies listed on the Dow Jones Industrial Average rely on BeyondTrust to secure their enterprises. Customers include eight of the world's 10 largest banks, eight of the world's 10 largest aerospace and defense firms, and seven of the 10 largest U.S. pharmaceutical companies, as well as renowned universities across the globe.
This press release may contain certain forward-looking statements, including statements with regard to the future performance(s) of FSC and/or FSFR. Words such as "believes," "expects," "estimates," "projects," "anticipates," and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and these factors are identified from time to time in FSC's and/or FSFR's filings with the Securities and Exchange Commission. Neither FSC nor FSFR undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Source:Fifth Street Finance Corp.;Fifth Street Senior Floating Rate Corp.