WASHINGTON (August 17, 2010) – Sutherland Asbill & Brennan LLP represented Saratoga Investment Advisors, LLC in its $15 million purchase of a minority stake in GSC Investment Corp., a business development company, or “BDC." The purchase was part of a $55 million recapitalization plan to enable GSC Investment Corp. to pay off its existing defaulted debt and grow its business of lending to middle-market companies. Under the terms of the stock purchase agreement, Saratoga replaced GSC Group as GSC Investment Corp.’s external investment manager and administrator. Subsequent to the purchase, the name of GSC Investment Corp was changed to Saratoga Investment Corp., and a new NYSE stock ticker symbol, SAR, was created. The transaction closed July 30.
Saratoga Investment Advisors, LLC, is a New York-based investment firm which focuses on credit-driven strategies. It is affiliated with Saratoga Partners, a leading middle-market private equity investment firm with $750 million of committed and invested institutional capital.
The Sutherland team was led by Financial Services Partner Steven B. Boehm and Corporate Partner Harry S. Pangas, both in Washington, D.C., and included Corporate Partners Douglas J. Leary and James D. Darrow in Washington, D.C.; Tax Partner David A. Roby Jr. in Washington, D.C.; and Corporate Partner Eric R. Fenichel in Atlanta.
SUTHERLAND ASBILL & BRENNAN LLP
Sutherland Asbill & Brennan LLP is a law firm with global reach known for solving challenging business problems and resolving sophisticated legal issues for many of the world’s largest companies. Founded in 1924, the firm handles matters throughout the United States and worldwide. Seven major practice areas—corporate, energy and environmental, financial services, intellectual property, litigation, real estate, and tax—provide the framework for an extensive range of focus areas, allowing Sutherland attorneys to serve a diverse client base that ranges from small and medium-sized start-up businesses to a significant number of Fortune 100 companies.
Target & Acquirer name, nation, business description:
Target: GSC Investment Corp.; New York, New York; was a specialty finance company that invested primarily in leveraged loans and mezzanine debt issued by U.S. middle-market companies, high-yield bonds and collateralized loan obligations. It had elected to be treated as a business development company under the Investment Company Act of 1940.
Acquirer: Saratoga Investment Advisors, LLC; New York, New York; is an investment firm formed to focus on credit-driven strategies. It is affiliated with Saratoga Partners, a leading middle-market private equity investment firm with $750 million of committed and invested institutional equity capital. Saratoga Partners primarily invests in businesses with strong management teams and valuations between $50 million and $500 million, specializing in companies in manufacturing and business services. It also has a successful record in special situations and distressed investing.
Date Deal Announced: April 14, 2010
Date of Completion (if applicable): July 30, 2010
Deal status: Completed
Which party firm advised: Saratoga Investment Advisors, LLC
Advisory role: Legal Counsel
Deal Description or comments (if necessary):
Sutherland Asbill & Brennan LLP represented Saratoga Investment Advisors, LLC, in its purchase of a minority stake in GSC Investment Corp.
Value (if disclosed): $15 million