Venable LLP serves as Maryland counsel in GSC recapitalization deal

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Venable client GSC Investment Corp. announced yesterday a $55 million recapitalization plan to cure its debt default. According to the company's release, Saratoga Investment Advisors, LLC and CLO Partners LLC have agreed to purchase a minority stake the company as part of a recapitalization plan to enable GSC to grow its business of lending to middle-market companies. GSC has been in default under its credit facility since last July.

The recapitalization plan includes Saratoga and CLO Partners purchasing approximately 9.8 million shares of common stock of GSC Investment Corp. for $1.52 per share pursuant to a definitive stock purchase agreement for a minority investment, pro forma for the issuance of the new shares, of approximately 37% of GSC's equity.

Venable attorneys Sharon Kroupa, Carmen Fonda and Hirsh Ament served as GSC Investment Corp.'s legal counsel on Maryland law and related matters.