Global Compliance Makes SilentWhistle Deal
The Angelo Gordon portfolio company takes outside funding to complete an acquisition when business services M&A has been scarce.
June 24, 2009
Angelo Gordon & Co.’s Global Compliance Services received a $23 million debt facility to support its recapitalization following an acquisition.
Golub Capital, which is new to the credit, did not get a dividend as a result of its loan to the company. Angelo Gordon did not take a dividend as part of the recap.
Global Compliance Services will use the credit facility to support its buy of SilentWhistle Inc., a provider of ethics and compliance reporting services.
SilentWhistle offers a round-the-clock hotline business for confidential, anonymous reporting to employees, customers and partners looking to identify business misconduct. The company offers services in 150 languages. Global Compliance was founded in 1981 to provide an ethics and compliance reporting hotline. It currently serves more than 4,000 clients, including 50% of the Fortune 100, along with government entities and not-for-profits.
Steve Grossman, Global Compliance’s interim chief executive, said SilentWhistle’s ability to connect with smaller companies drove the transaction; so the compliance company could make an effort to better establish its footprint in the middle market.
Golub Capital provides financing for middle market companies, including one-loan financings, senior, second lien and subordinated debt. The firm also underwrites and syndicates senior credit facilities up to $150 million; hold sizes range from $5 million to $75 million. Angelo Gordon typically makes control investments across a range of industries, including business services, ranging between $30 million and $500 million.
Representatives from Global Compliance did not respond to requests for comment.
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