Prospect Capital has provided a $42 million senior secured loan to support the acquisition of Gulf Coast Machine and Supply Company, a provider of large format forgings used in the energy and industrial end markets, by Altus Capital Partners.
“Prospect’s responsiveness and flexible capital solution helped to ensure a successful closing,” said Dale Cheney, a Principal at Altus. “We look forward to working with Prospect, a reliable capital source, on future transactions.”
Gulf Coast Machine and Supply Company (Gulfco) is a provider of large format forgings. Capabilities include ring rolling, open die forging, machining, heat treating, and testing for products formed into large format discs, shaped dies, seamless rolled rings, bushings, and blocks. The company’s products are used in subsea production facilities, refineries, offshore oil and gas rigs, and mining. Gulfco is based in Beaumont, TX (www.gulfco.com).
Prospect has closed more than $1.5 billion of originations to date in the current 2012 calendar year, including approximately $750 million in the September 2012 quarter. Prospect’s advanced investment pipeline aggregates more than $600 million of potential opportunities.
Prospect invests from $10 million to $75 million in private and micro-cap public businesses located in the US and Canada that have from $3 million to $30 million of EBITDA. Investment structures include: senior debt; unitranche debt; 2nd lien and mezzanine debt; and “one stop” debt and equity. The firm invests in wide array of industries and is effectively industry agnostic. Prospect is based in New York (www.prospectstreet.com).
“Gulfco is a leading quick-turn supplier of large format forgings to the expanding offshore oil and gas and industrial markets,” said Robert Melman, a Vice President with Prospect Capital Management. “Prospect appreciates the opportunity to support the Altus acquisition of this growing company.”
© 2012 PEPD • Private Equity’s Leading News Magazine • 10-15-12