Goldman’s PMMC makes three new investments in Q3

One of the New York-based investment bank’s non-traded BDCs made its largest commitment through a first lien, last out unitranche loan. 

Goldman Sachs Private Middle Market Credit (PMMC) put $100.8 million to work in the fourth quarter through five separate investments, according to filings made on Friday with the US Securities and Exchange Commission.

The New York-based business development company made commitments comprising three new and two existing portfolio companies from 1 October through 4 January, the regulatory documents showed.

Investments in new businesses included a $38.5 million first lien, last out unitranche to You Fit; a $2 million revolver, a $5.3 million senior secured loan and a $14 million delayed draw term loan to Clinical Supplies Management (CSM); and a $28 million second lien senior secured loan to Association Member Benefits Advisors (AMBA).

PPMC’s loans carry interest rates of LIBOR plus 6.75 percent for You Fit, LIBOR plus 7.75 percent for CSM and LIBOR plus 8.75 percent for AMBA. All are subject to a 1 percent LIBOR floor.

Money put into the existing portfolio companies include a $3.4 million senior unsecured note and $1.6 million in preferred convertible stock with Roland Foods, and a $10.5 million second lien senior secured term loan to Granicus.

The mid-market lender made its initial investments with both companies earlier in 2016. In July, Roland Foods received access to a $20 million second lien senior secured loan, while Goldman Sachs extended its initial investment of $15 million second lien senior secured loan in September.

The firm did not immediately respond to request for comment.

Only one of Goldman Sachs’ BDCs, PMMC’s portfolio consists of, at fair value: 60.4 percent second lien senior secured debt, 22.8 percent first lien senior secured debt, 16.1 percent first lien last-out unitranche and 0.7 percent of preferred stock, according to its third quarter report. The firm has eight portfolio companies. Goldman Sachs BDC is the New York-based investment bank’s publicly listed BDC.