GSO BDC initial portfolio anchored by two warehouse transactions

The New York-based credit firm is in the throes of raising its new direct lending vehicle and has collected over $950m so far.

GSO Capital Partners’ new business development company has pulled in almost $1 billion and has accumulated more than $600 million in total investments since it began operations in mid-November.

The New York-based credit behemoth has locked down $952.2 million as of 31 December for its Blackstone / GSO Secured Lending Fund (SLF), according to the vehicle’s annual report. The firm also has $900 million in potential borrowings, including a revolver each with JPMorgan and BNP Paribas and a subscription facility with Bank of America.

The firm did not provide immediate comment.

SLF purchased two loan books to build out its portfolio, a warehouse of mid-market loans that totalled $200.1 million at year-end and a separate warehouse of broadly syndicated loans.

The firm’s total investments stood at $616.9 million in 61 portfolio companies, which included $393.4 million of directly originated and anchor orders in syndicated loans and $223.5 million of broadly syndicated loans, each of which included positions acquired in the warehouse transaction.

The BDC generated net investment income for the period it was in operation (20 November to 31 December) of $1.29 million, or $0.17 a share. Markdowns of $0.56 a share resulted in an earnings per share loss of $0.39. It had total assets of $561.83 million.

The BDC is industry agnostic with its highest concentration of capital invested in healthcare providers and services (17.97 percent) and hospitality (16.98 percent).

The BDC’s portfolio is currently comprised of 98.84 percent senior-secured first-lien loans and unitranche loans, and 1.16 percent second-lien loans. The entire portfolio is comprised of floating-rate loans and has a weighted average yield of 8.76 percent.

Rebecca Szkutak contributed to this report.