New program developed for unitranche loans

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Capital One has announced a new program for originating unitranche loans for middle-market healthcare companies. HPS Transaction LLC will be the strategic co-investor.

The unitranche loan transaction will help borrowers obtain first lien unitranche loans without a ratings agency, the company said.

A unitranche loan consolidates senior and junior debt pricing and terms into a single first lien debt facility rather than creating two classes of debt and coordinating among multiple lenders, the company said. Borrowers are meant to benefit from a single, blended interest rate.