During 2018, we represented a variety of lead arrangers, initial lenders and administrative agents in three strategic acquisitions sponsored by New York private equity firm Veritas Capital: GE Healthcare’s Value-Based Care Division, Cambium Learning Group Inc. and PricewaterhouseCoopers’ US Public Sector Business. Veritas, with more than 90 acquisitions completed to date since its founding in 1992, focuses on investing in technology and technology-enabled solutions.
Each of Veritas’ 2018 acquisitions included second-lien loans as junior debt capital in addition to first-lien loans. At their most basic level, second-lien loans are debt that is repaid after first-lien loans are repaid in full in the event of a bankruptcy or default. Second-lien loans have become more popular with private equity sponsors than high-yield bonds, due in large part to their lower prepayment premiums, generally easier syndication process, less cumbersome ongoing reporting obligations and greater restricted payment flexibility.
In addition to these Veritas-sponsored transactions, our Leveraged Finance group also represented lead arrangers, initial lenders and administrative agents in connection with a committed financing for Thoma Bravo’s acquisition of Quorum Software, the leader in digital transformation for the oil and gas industry, from Silver Lake. The financing for this transaction also included a substantial second-lien term loan facility.