Golub Capital Syndicates $225M Facility Financing the Buyout of Rough Country by Gridiron Capital

Press Release
July 3, 2017

NEW YORK, June 27, 2017 — Golub Capital recently announced that as sole lead arranger, it syndicated $225 million covenant-lite First Lien Facilities, consisting of a $20 million Revolver and $205 million First Lien Term Loan to support the buyout of Rough Country by Gridiron Capital, LLC (“Gridiron”).

The broad syndication targeted over 100 different accounts, closing with approximately 20 lenders in the book, including both direct and traditional CLO-based syndicated accounts. Despite only a handful of sub-$50 million EBITDA covenant-lite syndications, Golub Capital was able to fully underwrite and successfully price a broadly syndicated covenant-lite liquid loan, which broke for trading at 99.5 – 100.5, and had multiple post-break trades.

“The $205 million First Lien Term Loan tranche size is one of the smallest covenant-lite issuances to date. Golub Capital finances great businesses and believes in developing strong relationships, and in Rough Country and Gridiron, we have both. We appreciate the trust to act as the sole lead arranger and provide the borrower optimal flexibility through a broadly syndicated solution,” said Jason Van Dussen, Managing Director, Head of Capital Markets.

Rough Country, founded in the 1970s and based in Dyersburg, Tenn. manufactures and distributes suspension products and off-road accessories for trucks, SUVs and Jeeps.

Gridiron Capital, headquartered in New Canaan, Connecticut, is a private equity firm focused on creating value by acquiring and building middle-market manufacturing, service and specialty consumer companies in the United States and Canada.

Golub Capital’s Middle Market Lending group provides financing for middle market, private equity-backed transactions with hold positions of up to $400 million and is an arranger of credit facilities up to $750 million. Golub Capital’s award-winning team strives to establish long-term, win-win partnerships by providing dependable, fast and creative solutions that meet private equity sponsors’ and portfolio companies’ needs.

For more information on this transaction, read the press release.