Goldman BDC duo commits over $75m in two weeks

Its Middle Market Lending vehicle was launched in July, while its Private Middle Market Credit entity started up in January.

Goldman Sachs & Co.’s two private business development companies put a combined $76.4 million to work over the latter half of last month, the New York-based mid-market lenders said in US Securities and Exchange filings last week.

Goldman Sachs Middle Market Lending and Goldman Sachs Private Middle Market Credit made commitments of $24.5 million and $51.9 million, respectively, from 16 March to 3 April. Each vehicle made commitments to American Dental Partners, NetVoyage Corporation and Yasso, according to regulatory documents.

American Dental, a Wakefield, Massachusetts-based company that provides business services to dental practices, received $21.5 million in commitments from MML and PMMC for a second lien senior secured loan, with the former providing $7.9 million and the latter pledging $13.6 million. The debt is priced at LIBOR, which is subject to a 1 percent floor, plus 8.5 percent and matures in September 2023.

For NetVoyage, a cloud-based software provider headquartered in Utah, the two Goldman vehicles committed $1.6 million for a revolving credit facility and $19.8 million for a first lien senior secured loan, MML committed $600,000 for the revolver and $7.3 million for the first lien debt, while PMMC is on record for $1 million and $12.5 million, respectively. Both loans carry an interest rate of LIBOR – also subject to a 1 percent floor – plus 9.5 percent and come due in March 2022.

Yasso, a Quincy, Massachusetts-based maker of Greek frozen yogurt, received a $22.9 million first lien senior secured loan and a $2.2 million equity investment. MML and PMMC committed $8.4 million and $14.5 million for the first lien debt, respectively, and $800,000 and $1.4 million for the equity investment. The loan is priced at LIBOR, subject to a 1 percent floor, plus 7.75 percent and matures in March 2022.

PMMC also provided an additional $10 million for ProCare Software, to which the Goldman vehicle committed an initial $25 million second lien senior secured loan in September. The loan is priced at LIBOR, with a 1 percent floor, plus 8.75 percent and matures in September 2022.

Both BDCs are newer products than the New York-based investment bank’s flagship Goldman Sachs BDC. Goldman launched PMMC in January with $609.57 million of capital, while MML filed its registration statement in July 2016. As of 31 December, MML had $1 billion of commitments.

Goldman registered GSBD as a BDC in March 2013 and took it public two years later at $20 a share, raising $120 million from an offering of 6 million shares. MML began operations in the third quarter, with its initial quarterly report showing the BDC had at least $730.05 million in commitments before it launched.