Franklin Square Capital Partners has provided $125 million in a mix of debt and equity to Zeta Interactive, a New York-based data-driven marketing and analytics company, the firm announced on July 16. Franklin Square Capital BDCs provided the financing and were sub-advised by an affiliate of GSO Capital Partners, Blackstone’s credit arm.
The loan is priced in the range of 6.5 to 8.5 percent with a one percent Libor floor, Private Debt Investor has learned. Of the $125 million, the equity component makes up about $10 million, according to sources familiar with the deal.
The deal was signed within three weeks after Franklin Square first expressed interest in the transaction, particularly fast given that the borrower went through 26 term sheets before signing the final termsheet, according to media reports.
The capital will back Zeta’s expansion of its existing digital marketing services including through strategic acquisitions and increase market penetration in the US and UK, according to the statement. Over the last two years Zeta has acquired companies further down the service chain such as Clicksquared, an automated marketing platform, and a division of Adchemy Inc.
Founded by former Apple CEO, John Sculley, and David A. Steinberg in 2007, Zeta Interactive uses data to provide digital marketing services for clients like T-Mobile, National Geographic, Time Inc and US Airways. Last year, the firm generated about $168 million in revenues.
Franklin Square Capital manages BDCs with around $14.5 billion in assets under management. The Franklin Square BDCs, including a publicly traded one, provide credit to mid-market companies in the US mostly in the form of senior secured lending.