Kroll Leaves Foothill For New Line With Goldman
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Kroll Leaves Foothill For New Line With Goldman

Kroll tapped Goldman Sachs for a $100 million facility, terminating its pre-existing $15 million revolver with Foothill Capital.Mike Petrullo, deputy chief operating officer, said the company went with Goldman to build on a growing relationship. "They are a terrific institution that we want a longer association with," he said. "We are also doing an equity offering in which Goldman is going to lead, so it was a really great opportunity from the financing end to be associated with Goldman Sachs and have them advise us through that and actually be the majority placement of the financing."

The three-year line includes a $75 million term loan and a $25 million revolver, with pricing tied to a grid based on pro forma leverage and debt ratings, according to Petrullo. The line is secured by all of the company's domestic assets, as well as certain pledges of stock from its foreign subsidiaries, Petrullo added. The new facility was put in place to help finance the independent risk consulting firm's acquisition of New York-based restructuring firm, Zolfo Cooper.

Goldman led the syndication with co-managers Credit Suisse First Boston and Bear Stearns. Petrullo said the line's implementation went smoothly, taking less than four weeks to secure the deal. Chris McDonald, senior v.p. of Foothill, could not speculate on why Foothill was not invited to lead the facility.

Kroll used the $75 million piece to help finance the acquisition, which closed on Sept. 5. The $25 million revolver portion will be maintained for general corporate purposes. The entire purchase pumped Kroll for $153 million in cash and common stock, with an earn-out based on performance targets. Petrullo commented that with the transaction, Kroll--now to be called Kroll Zolfo Cooper--should hopefully become a "leading transatlantic corporate advisory and restructuring group."

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