Franklin Square Capital Partners has provided a USD260 million unitranche term loan to support the acquisition and combination of Trover Solutions and Equian by New Mountain Capital, a New York-based alternative investments firm that manages approximately USD15 billion of private equity, public equity and credit assets.
The financing was 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, an affiliate of GSO Capital Partners LP (GSO).
The combination of Equian and Trover brings together businesses with complementary expertise offering payment integrity solutions to commercial health plans and other insurance providers. Equian is a leading payment integrity platform providing solutions to facilitate and reconcile payments in the complex environments of healthcare and property & casualty insurance. Equian has a wide range of solutions including pre-payment accuracy and containment and post-payment reconciliation and recovery services, generating hundreds of millions in savings for customers. Trover is a leading independent vendor of comprehensive cost containment services and software to the private healthcare payer and property & casualty insurance industries. Trover provides a wide range of cost containment solutions including insurance subrogation, overpayments recovery, clinical bill auditing and litigation management. The combination will be known as Equian going forward.
"Trover and Equian are a natural business combination with complementary offerings that we believe will create significant growth opportunities," says Brad Marshall, Senior Managing Director at GSO.
"Our investment in Trover and Equian demonstrates our ability to provide portfolio companies and financial sponsors customised credit solutions quickly and efficiently without concern for syndication risks or delays," says Michael C Forman, Chairman and Chief Executive Officer of FSIC, FSIC II and FSIC III.
