Golub Capital has provided a one-loan debt facility to support the acquisition of a snack food franchisor, having previously offered such facilities to support private equity acquisitions of companies in pet supply, technology and other sectors.
Golub announced Tuesday that it acted as administrative agent, sole book-runner and lead arranger on a $66.5 million loan to CenterOak Partners to finance its acquisition of Wetzel's Pretzels from Levine Leichtman Capital Partners. CenterOak received legal counsel on the transaction from Gibson, Dunn & Crutcher and Wetzel's Pretzels was advised by North Point Advisors.
CenterOak managing partner Randall Fojtasek declined to provide more detail the terms of the loan, and Golub and Wetzel's Pretzels representatives did not return messages seeking further detail on the loan by press time.
Wetzel's Pretzels sells freshly-baked soft pretzels in its 305 locations spread across 28 states and six countries, making it the second largest owner and franchisor of soft pretzel stores, according to a separate statement released by CenterOak. The company has experienced revenue and EBITDA growth every year for the past decade, according to a statement released by Levine Leichtman.
“We look forward to working with Wetzel's Pretzels management and CenterOak Partners as they pursue growth opportunities for the business,” Golub senior managing director Gregg Cashman said in the statement.
Fojtasek said that the company's future growth is likely to focus on expansion within the United States.
Gloub's loan was offered as a one-loan debt, or GOLD , facility. In July, Golub provided a $605 million GOLD facility to finance the merger of two pet food and accessories suppliers and had previously offered a $59 million one-loan debt facility to a fibre-optic infrastructure company in 2013.
CenterOak Partners is a mid-market private equity firm focused on the industrial, consumer and business services sectors in the US South and Southwest. Based in Dallas, Texas, the firm pursues control-orientated investments and has completed nearly 100 acquisitions totaling over $3 billion in transaction value.
Golub is a credit asset manager founded in 1994. The firm has $18 billion in capital under management and maintains distinct business lines dedicated to mid-market lending, late stage lending and broadly-syndicated loans.