O2 Sponsor Finance provides $30MM Credit Facility to Support Borgman Capital's recapitalization of Gilman Cheese Corporation

Rhea-AI Summary

O2 Sponsor Finance (OSBC) provided a $30 million senior secured credit facility to support Borgman Capital's recapitalization of Gilman Cheese Corporation on March 31, 2026. Gilman Cheese, headquartered in Gilman, Wisconsin, is a developer and private labeler of premium clean‑label processed cheeses.

The financing is intended to position Gilman for its next phase of growth and to support the company's growth initiatives, with O2 Sponsor Finance stating it will continue to support execution of those initiatives.

Positive

• $30M senior secured credit facility provided to Gilman Cheese
• Financing supports Borgman Capital's recapitalization of Gilman Cheese
• O2 Sponsor Finance backing signals continued operational support for growth initiatives

Negative

• Adds $30M senior secured debt to Gilman Cheese capital structure

News Market Reaction – OSBC

+1.56%

1 alert

+1.56% News Effect

On the day this news was published, OSBC gained 1.56%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Credit facility size: $30 million

1 metrics

Credit facility size $30 million Senior secured credit facilities to support Gilman Cheese recapitalization

Market Reality Check

Price: $20.45 Vol: Volume 284,362 is below t...

normal vol

$20.45 Last Close

Volume Volume 284,362 is below the 20-day average of 406,766, suggesting muted trading interest pre-announcement. normal

Technical Shares trade above the 200-day MA of 18.79, reflecting an established upward trend before this news.

Peers on Argus

OSBC was up 1.43% with mixed peer moves: BHRB +1.42%, CTBI +0.30%, NBN +0.57%, w...

OSBC was up 1.43% with mixed peer moves: BHRB +1.42%, CTBI +0.30%, NBN +0.57%, while BRKL -0.99% and TMP -0.14%, indicating stock-specific rather than broad sector momentum.

Historical Context

4 past events · Latest: Jan 21 (Positive)

Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Jan 21	Q4 2025 earnings	Positive	-1.0%	Strong Q4 earnings growth and higher net interest and dividend income.
Dec 01	Sponsor finance deal	Neutral	+0.9%	O2 Sponsor Finance providing senior secured facilities for EventLink acquisition.
Oct 22	Q3 2025 earnings	Neutral	-0.5%	Earnings impacted by Bancorp Financial acquisition and related credit provisions.
Oct 20	Evergreen integration	Positive	+4.0%	Completion of Evergreen Bank Group integration and expanded branch network.

Pattern Detected

Recent news, including acquisitions and integration milestones, generally saw price gains, while one strong earnings report drew a mild negative reaction.

Recent Company History

This announcement highlights continued activity in OSBC’s O2 Sponsor Finance platform, following prior sponsor finance support for EventLink in December 2025. Over the past six months, Old Second has reported solid earnings trends, with Q4 2025 net income of $28.8M and notable loan and deposit growth. The bank also completed the Evergreen Bank Group integration on October 20, 2025, expanding its footprint. Today’s Gilman Cheese credit facility fits into that narrative of leveraging specialized lending capabilities alongside broader balance-sheet growth and integration progress.

Market Pulse Summary

This announcement showcases OSBC’s O2 Sponsor Finance unit providing a $30 million senior secured fa...

Analysis

This announcement showcases OSBC’s O2 Sponsor Finance unit providing a $30 million senior secured facility to support Borgman Capital’s recapitalization of Gilman Cheese. It reinforces the bank’s strategy of leveraging specialized lending to middle-market sponsors, complementing prior acquisition and integration activity. Investors may watch how this and similar deals affect loan mix, credit performance, and sponsor finance fee income over time, alongside ongoing earnings trends and balance-sheet developments disclosed in recent filings.

Key Terms

senior secured credit facilities, recapitalization

2 terms

senior secured credit facilities financial

"it provided $30 million in senior secured credit facilities to support Borgman"

Senior secured credit facilities are loans or lines of credit that a company borrows where lenders have first claim on specified assets if the company cannot pay back its debts. Think of it like a mortgage on a house: the bank holds the deed (collateral) and gets paid before other creditors, which usually makes the loan cheaper for the borrower. Investors watch these arrangements because they affect a company’s cost of borrowing, financial risk, and how available assets are prioritized if the company faces financial trouble.

recapitalization financial

"credit facilities to support Borgman Capital's recapitalization of its portfolio company"

Recapitalization is a deliberate change to a company's mix of debt and equity—how much it borrows versus how much is funded by shareholders—accomplished by issuing or repaying debt, buying back shares, or issuing new shares. It matters to investors because it alters the company's risk profile, potential returns and cash flow stability: increasing debt can amplify returns but raises the chance of financial stress, while adding equity can dilute ownership but lower default risk—like swapping between a mortgage and savings to reshape household finances.

AI-generated analysis. Not financial advice.

CHICAGO, IL / ACCESS Newswire / March 31, 2026 / O2 Sponsor Finance, a division of Old Second National Bank, today announced that it provided $30 million in senior secured credit facilities to support Borgman Capital's recapitalization of its portfolio company Gilman Cheese Corporation ("Gilman" or the "Company").

Headquartered in Gilman, Wisconsin, Gilman a leading developer, manufacturer and private labeler of premium, high-quality, clean label processed cheeses. Gilman serves a diverse customer base of consumer food companies, gift basket and specialty gourmet producers, deli distributors and institutional distributors.

"We are pleased to support Borgman Capital in its recapitalization of Gilman Cheese. This transaction positions Gilman Cheese for its next phase of growth. We look forward to continuing to support the Company as it executes on its growth initiatives", said Nick O'Brien, Senior Vice President, O2 Sponsor Finance.

About Gilman Cheese Corporation: Headquartered in Gilman, Wisconsin, Gilman Cheese Corporation is a leading manufacturer of premium processed cheeses. The Company specializes in premium quality, shelf stable processed cheese for the gift pack, retail, and airline industry as well as smoked cheese, both natural and processed. Gilman Cheese is the largest employer in the village of Gilman. www.gilmancheese.com

About Borgman Capital: Founded in 2017, Borgman Capital is a private investment firm focused on acquiring successful lower middle market businesses that are poised for growth, and real estate properties with untapped potential. Borgman Capital partners with business owners, management teams, and property owners seeking private equity as a growth or exit strategy. Headquartered in Milwaukee, the firm also has operations in the Twin Cities; Portland, Oregon; and Indianapolis. www.borgmancapital.com

About O2 Sponsor Finance: O2 Sponsor Finance is a national provider of cash flow-based loans to lower middle market businesses with typically $10 to $100 million in revenue and between $2 million and $10 million in EBITDA. O2 Sponsor Finance focuses on supporting private equity sponsors, independent sponsors and family offices in their acquisition or recapitalization of lower middle market companies. www.O2sponsorfinance.com.

About Old Second Bancorp, Inc.: Old Second Bancorp, Inc., headquartered in Aurora, Illinois, is the bank holding company for Old Second National Bank, which celebrated 150 years of operation in 2021. Old Second's common stock trades on The NASDAQ Stock Market under the symbol "OSBC". More information about Old Second is available by visiting the "Investor Relations" section of its website: www.oldsecond.com.

As of December 31, 2025, Old Second has approximately $6.9 billion in assets, $5.6 billion in deposits and $5.2 billion in loans.

Old Second National Bank, Member FDIC.

Contact:

Bradley S. Adams EVP, Chief Operating Officer and Chief Financial Officer (630) 906-5484

SOURCE: Old Second Bancorp Inc.

View the original press release on ACCESS Newswire

FAQ

What did O2 Sponsor Finance (OSBC) announce on March 31, 2026 about Gilman Cheese?

They provided a $30 million senior secured credit facility to support a recapitalization of Gilman Cheese. According to O2 Sponsor Finance, the facility is meant to position Gilman for its next phase of growth and support its growth initiatives.

How does the $30M facility affect Borgman Capital's recapitalization of Gilman Cheese?

It serves as the senior secured financing underpinning the recapitalization transaction. According to O2 Sponsor Finance, the credit facility supports Borgman Capital's recapitalization and helps fund Gilman Cheese's planned growth initiatives and operational plans.

What type of company is Gilman Cheese and where is it headquartered?

Gilman Cheese is a developer, manufacturer and private labeler of premium, clean‑label processed cheeses headquartered in Gilman, Wisconsin. According to O2 Sponsor Finance, Gilman serves consumer food companies, gift basket and specialty producers, deli and institutional distributors.

What does the financing mean for O2 Sponsor Finance (OSBC) as the lender?

O2 Sponsor Finance provided a secured lending solution tied to a private equity recapitalization, demonstrating sponsor finance activity. According to O2 Sponsor Finance, the transaction reflects its role supporting sponsor-backed recapitalizations and follow‑on growth initiatives.

Will the $30M facility materially change Gilman Cheese's capital structure?

Yes; the facility adds senior secured debt to Gilman's capital structure and finances the recapitalization. According to O2 Sponsor Finance, the $30 million facility is intended to position the company for future growth while supporting Borgman Capital's recapitalization plan.