TSSP powers up debt for Illinois manufacturer

TPG’s BDC and other funds within its special situations platform contributed a combined $60m to a new $135m facility for Power Solutions International.  

Power Solutions International (PSI) announced Wednesday (29 June) that it has closed a $135 million senior secured credit facility from a group of lenders that includes Wells Fargo and two divisions of TPG.

TPG Specialty Lending (TSLX) and an unnamed fund within the TPG Special Situations Partners (TSSP) platform provided a new $60 million term loan to PSI.

PSI designs and manufactures alternative-fuel power systems. Based in Wood Dale, Illinois, PSI's industrial and on-road engines are designed to run on a variety of fuels, including natural gas, propane, biogas, gasoline and diesel.

In addition to TSSP's loan, the facility includes a $75 million asset-based revolver from Wells Fargo. The debt matures in June 2021 and replaces PSI's existing $125 million credit facility that is due to expire in June 2018.

Cadence Credit Partners acted as financial advisor to PSI on the transaction.

TSSP is TPG's special situations platform and has $18 billion of assets under management. Founded in 2009, the unit focuses on private-market transactions through its direct lending, distressed, special situations and multi-strategy credit departments.

In May, the platform purchased $1.27 billion in distressed debt assets from Credit Suisse Asset Management that included 270 deals involving 170 companies and $300 million in undisclosed assets.

TSLX is the BDC of TPG and falls under the TSSP umbrella. It typically offers senior secured and mezzanine loans of between $15 million and $350 million to companies with between $10 million and $250 million of EBITDA in the business services, healthcare, energy and retail sectors, among others.

The parent company TPG has over $70 billion in assets under management. Based in Fort Worth, Texas, the firm was founded in 1992 and maintains 17 offices.