KKR & Co. LP (KKR) , Franklin Square Capital Partners and GSO Capital Partners have purchased all of Allen Systems Group Inc.'s first-lien debt from TPG Opportunities Partners, according to sources.
Naples, Fla.-based Allen Systems, a privately-held provider of enterprise IT software solutions which is also known as ASG Software Solutions, announced on Nov. 9 that the investor group had purchased the first-lien debt but didn't disclose who the seller was.
Multiple sources, who asked not to be named, said seller is TPG Opportunities, an investment platform of Fort Worth, Texas, private equity firm TPG Capital LP.
TPG officials didn't immediately return a request for comment.
One source said that Allen Systems will now need to recapitalize its balance sheet and will likely do this by converting its debt into equity. The source believes all the company's second-lien debt will be converted into equity with some of the first-lien debt possibly following the same path.
Blackstone Group LP's credit arm GSO Capital Partners, Franklin Square and KKR's credit business hold the majority of Allen Systems' second-lien debt.
Calls to GSO, Franklin Square and KKR weren't returned on Monday.
John DiDonato of Huron Consulting Group Inc., who is serving as Allen Systems' chief restructuring officer, couldn't be reached for comment.
The company was also advised by investment bankers from Rothschild, sources said.
Allen Systems officials declined to comment.
The company has $300 million in 10.5% second-lien notes, which mature on Nov. 15, 2016.
Allen Systems has a first-lien term loan and revolver due in December 2017. The company has a $25 million revolving credit facility, $214 million in first-lien term loans, and $10 million outstanding under senior secured foreign credit facilities.