December 12, 2016, Bethesda, MD – Capital One announced today that it has established a new program to originate unitranche loans to middle-market healthcare companies, with HPS Investment Partners as its strategic co-investor. The program, through Unitranche Loan Transaction, LLC, will help borrowers to obtain first lien unitranche loans without a rating agency or a syndication process.
“In this competitive, fast-paced environment, private equity sponsors and borrowers can realize a significant advantage if they close financing quickly and reliably,” said Darren Alcus, President, Capital One Healthcare. “We are excited to add this unitranche loan program to our offerings as it will provide our clients with speed, certainty and one stop for their financing needs.”
A unitranche loan blends senior and junior debt pricing and terms into a single first lien debt facility rather than creating two classes of debt and coordinating among multiple lenders. This approach increases certainty of execution, and borrowers typically benefit from a single, blended interest rate.