Babson Capital Makes Sub Debt and Equity Investment in Latest Sterling Acquisition
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Babson Capital Makes Sub Debt and Equity Investment in Latest Sterling Acquisition

Babson Capital Management has provided subordinated debt and made an equity co-investment to support Sterling Investment Partners’ acquisition of Service Logic. Babson Capital served as the lead provider of subordinated debt on the transaction.

“Babson Capital has proven itself to be a reliable, trusted and value-added business partner to Sterling Investment Partners on many investments over the course of our long and successful relationship,” said William Macey, a Managing Partner of Sterling. “We look forward to working with the Babson Capital team on Service Logic and other investments in the future.”

Service Logic is a provider of preventive and predictive maintenance services and related energy sustainability services for heating, ventilation and air conditioning systems. The company services over 6,000 commercial, industrial and institutional clients for HVAC systems, chilled water systems and building automation and controls. Service Logic operates through six co-branded business units: Engineered Cooling Systems, FacilitTech, Midwest Mechanical, Piedmont Service Group, PSR Mechanical and Tolin Mechanical. States served include Arizona, Colorado, Illinois, North Carolina, South Carolina, Florida, Alabama, Virginia and Washington. Service Logic employs approximately 600 field technicians, engineers and project managers. The company is based in Denver, CO (www.servicelogic.com).

Babson Capital had $154 billion in assets under management as of September 30, 2012 and is a member of the MassMutual Financial Group. The firm is based in Boston and Springfield, MA and Charlotte, NC and has six additional offices in the US and one in Sydney, Australia, with subsidiaries in London and Tokyo (www.BabsonCapital.com).

“Sterling’s impressive history of success in acquiring and adding value to service-based businesses, combined with the strength of the Service Logic management team, made this an extremely attractive opportunity,” said Robert Shettle, Managing Director and a senior member of Babson Capital’s Mezzanine & Private Equity Group. “With our focus on developing strong long-term relationships with high-quality private equity sponsors, Babson Capital is extremely grateful to be able to call Sterling our partner for more than 18 years.”

Sterling Investment Partners invests in companies with revenues of $50 million to $300 million and EBITDAs of $10 million to $40 million. Sectors of interest include business services, industrial and consumer value-added distribution, niche manufacturing, and transportation and logistics. Sterling has approximately $1 billion of equity capital under management and was founded in 1991. The firm is based in Westport, CT (www.sterlinglp.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-6-12

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