OHA is Administrative Agent & Lead Left Arranger of Private Unitranche Financing Supporting Carlyle’s Acquisition of Worldpac

Rhea-AI Summary

Oak Hill Advisors (OHA) has played a pivotal role in Carlyle's acquisition of Worldpac, serving as the Administrative Agent and Lead Left Arranger of a private unitranche financing facility. Worldpac, previously a subsidiary of Advance Auto Parts, is a national distributor of automotive parts to independent service professionals. OHA provided the entire unitranche financing, while its partner BMO Capital Markets managed the asset-based lending facility.

OHA's expertise in the automotive aftermarket industry enabled it to offer valuable input and structure a tailored financing solution. Eric Muller, Partner at OHA, expressed enthusiasm about extending their partnership with Carlyle and supporting Worldpac's future growth in its recession-resistant and expanding market.

Positive

• OHA provided the entire unitranche financing facility for Carlyle's acquisition of Worldpac
• Worldpac operates in a recession-resistant and growing end market
• Worldpac maintains strong competitive positioning and a diversified business model
• OHA's expertise in the automotive aftermarket industry enabled a tailored financing solution

Negative

• None.

New York, New York, Sept. 09, 2024 (GLOBE NEWSWIRE) -- Oak Hill Advisors (“OHA”) served as Administrative Agent and Lead Left Arranger of a private unitranche facility to support Carlyle’s acquisition of Worldpac, Inc. (“Worldpac”), a formerly fully owned subsidiary of Advance Auto Parts, Inc. Worldpac is a national distributor of original equipment and quality aftermarket replacement automotive parts, primarily to independent service professionals. OHA provided the entire unitranche financing facility, while its private credit joint venture partner BMO Capital Markets served as Administrative Agent on the company’s asset-based lending (“ABL”) facility.
  
OHA’s comprehensive understanding of the automotive aftermarket industry positioned it to provide constructive feedback to the sponsor and lead and structure this tailored financing solution.

“We are pleased to extend our long-standing partnership with Carlyle by lending in scale to support this transaction,” said Eric Muller, Partner and Portfolio Manager at OHA. “Operating in a recession-resistant and growing end market, Worldpac has maintained strong competitive positioning and a diversified business model, and we look forward to the future growth that we believe the company is well-positioned to achieve.”

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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 $65 billion of capital across credit strategies, including private credit, high yield bonds, leveraged loans, stressed and distressed debt and collateralized loan obligations as of June 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 Worldpac: Worldpac is a leading North American distributor of aftermarket automotive parts. The Company offers a wide assortment of products covering 40+ import and domestic carlines and operates through an extensive network of branch and distribution center locations across the U.S. and Canada. Worldpac was founded in 1995 and acquired by Advance Auto Parts in 2013 as a part of the acquisition of General Parts International. The Company reported $2.25 billion in revenues for 2023.

FAQ

What role did Oak Hill Advisors play in Carlyle's acquisition of Worldpac?

Oak Hill Advisors (OHA) served as the Administrative Agent and Lead Left Arranger of a private unitranche financing facility to support Carlyle's acquisition of Worldpac.

Who is Worldpac and what industry do they operate in?

Worldpac is a national distributor of original equipment and quality aftermarket replacement automotive parts, primarily serving independent service professionals. They operate in the automotive aftermarket industry.

What type of financing did OHA provide for the Worldpac acquisition?

OHA provided the entire unitranche financing facility for Carlyle's acquisition of Worldpac.

How does OHA view Worldpac's market position and growth potential?

OHA believes Worldpac operates in a recession-resistant and growing end market, maintains strong competitive positioning, and has a diversified business model. They expect Worldpac to achieve future growth.