OHA is Administrative Agent & Lead Left Arranger for Private Refinancing of FloWorks

Rhea-AI Summary

Oak Hill Advisors (OHA) has acted as Administrative Agent and Lead Left Arranger for a private unitranche facility supporting FloWorks, a portfolio company of Wynnchurch Capital. FloWorks, a leading specialty distributor of flow control products and technical solutions provider, will use the financing to refinance existing debt and fund future acquisitions. OHA, leveraging its industry knowledge through investments in similar companies, is the largest holder of the new facility. BMO Capital Markets participated as OHA's private credit joint venture partner.

Positive

• Secured new financing facility for debt refinancing and future acquisitions
• Largest holder position demonstrates strong institutional backing
• Strategic partnership with BMO Capital Markets enhances financing capabilities

Negative

• None.

Insights

Financial Analyst

The private refinancing deal for FloWorks represents a strategic financial restructuring that strengthens the company's balance sheet and positions it for growth. OHA's role as both Administrative Agent and Lead Left Arranger indicates significant confidence in FloWorks' business model and market position. The unitranche facility structure simplifies the company's debt profile while providing flexibility for future acquisitions.

The refinancing is particularly noteworthy given OHA's extensive experience in the flow control distributor sector, which likely enabled more favorable terms and a deeper understanding of FloWorks' value proposition. The participation of BMO Capital Markets as a joint venture partner adds credibility to the deal structure and suggests strong institutional backing.

New York, New York, Dec. 02, 2024 (GLOBE NEWSWIRE) -- Oak Hill Advisors (“OHA”) served as Administrative Agent and Lead Left Arranger for the private unitranche facility supporting FloWorks, a portfolio company of Wynnchurch Capital, L.P. (“Wynnchurch”). FloWorks is a leading specialty distributor of critical flow control products and provider of tailored technical solutions for MRO-focused applications. OHA is the largest holder across the new financing facility, which will be used to refinance the company’s existing debt and support future acquisitions.

OHA’s existing knowledge of the flow control distributor industry through its investments across other companies in the ecosystem positioned it to quickly provide constructive feedback and play a leadership role in this refinancing solution.

“Our familiarity with the specialty distribution industry through our investments in similar companies allowed us to quickly gain conviction in FloWorks and its business model,” said Eric Muller, Partner and Portfolio Manager at OHA. “The track record the company has built through its customized platform has proven its ability to gain significant market share while continuing to scale, and we look forward to contributing to FloWorks’ next stages of growth.”

BMO Capital Markets also participated in this financing as OHA’s private credit joint venture partner.

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About OHA: Oak Hill Advisors (OHA) is a leading global credit-focused alternative asset manager with over 30 years of investment experience. OHA works with institutions and individuals and seeks to deliver a consistent track record of attractive risk-adjusted returns. The firm manages approximately $71 billion of capital across credit strategies, including private credit, high yield bonds, leveraged loans, stressed and distressed debt and collateralized loan obligations as of September 30, 2024. OHA’s emphasis on long-term partnerships with companies, sponsors and other partners provides access to a proprietary opportunity set, allowing for customized credit solutions across market cycles.

With over 400 experienced professionals across six global offices, OHA brings a collaborative approach to offering investors a single platform to meet their diverse credit needs. OHA is the private markets platform of T. Rowe Price Group, Inc. (NASDAQ – GS: TROW). For more information, please visit oakhilladvisors.com.

About FloWorks:  Headquartered in Houston, Texas, FloWorks is a leading specialty distributor of critical flow control products and provider of tailored technical solutions for MRO-focused applications. The Company serves customers across chemicals, downstream refining & renewables, high purity & sanitary, and other industrial end markets. FloWorks’ product categories include valves & automation, corrosion resistant flow control, rotating equipment, flanges, filters & purifiers, and instrumentation. For more information, please visit gofloworks​.com.

About Wynnchurch: Wynnchurch, headquartered in the Chicago suburb of Rosemont, Illinois, with an affiliate in Canada, was founded in 1999 and is a leading middle-market private equity investment firm. Wynnchurch’s strategy is to partner with middle market companies in the United States and Canada that possess the potential for substantial growth and profit improvement. Wynnchurch manages a number of private equity funds with $9.2 billion of regulatory assets under management and specializes in recapitalizations, growth capital, management buyouts, corporate carve-outs, and restructurings. For more information, please visit: wyn​nchurch​.com.

FAQ

What role did Oak Hill Advisors play in FloWorks' refinancing?

Oak Hill Advisors served as Administrative Agent and Lead Left Arranger for FloWorks' private unitranche facility, and is the largest holder across the new financing facility.

What is the purpose of FloWorks' new financing facility?

The new financing facility will be used to refinance FloWorks' existing debt and support future acquisitions.

Who participated in FloWorks' refinancing besides Oak Hill Advisors?

BMO Capital Markets participated in the financing as OHA's private credit joint venture partner.