American Capital’s Sponsor Finance Group invested over $59 million in the first quarter to support the acquisitions of three companies.
“During the first quarter of 2013, we invested in three global middle market companies. Our transaction execution was efficient and we were able to provide competitive pricing and terms, working both directly with sponsors and participating in syndicated second lien term loans with leading investment banks,” said Adam Spence, Managing Director, American Capital. “The American Capital Sponsor Finance Group, with 29 investment professionals in the United States and Europe, is able to provide one stop financing solutions and subordinated debt capital and participate in syndicated second lien term loans.”
In March 2013, American Capital invested in a second lien facility to support the refinancing of Total Safety, a portfolio company of Warburg Pincus. Total Safety is an outsourced provider of safety and compliance products and services. Sectors served include on-site safety, turnaround safety, gas detection, respiratory protection, rescue, safety training, fire protection, safety compliance and inspection, industrial hygiene, onsite emergency medical treatment/paramedics, communications systems, and engineered system design. The company operates from more than 105 locations in 13 countries and is headquartered in Houston (www.totalsafety.com).
Also in March, American Capital invested in a second lien facility to support Abry’s acquisition of Datapipe, a provider of outsourced IT services to medium and large size enterprise customers. Datapipe has data center facilities in New York, Virginia, San Jose, London, Iceland, Hong Kong and Shanghai and is headquartered in Jersey City, NJ (www.datapipe.com).
The third transaction in Q1 was completed in February when American Capital invested in a new first lien facility as part of the refinancing of its existing portfolio company, Neways, a multi-level marketing company. American Capital acted as lead syndication and administrative agent on the transaction. Neways sells personal care and nutritional health products, including liquid vitamins, dietary supplements, and beauty care products through a network of independent distributors. The company is headquartered in Springville, UT (www.neways.com).
American Capital is a publicly traded private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $117 billion in total assets under management and has eight offices in the US, Europe and Asia. The firm is headquartered in Bethesda (www.AmericanCapital.com).
“Our flexible capital and our wide-ranging financing capabilities position us to move quickly and finance new attractive acquisitions, capital structure refinancings and corporate growth initiatives,” said Bowen Diehl, Managing Director, American Capital. “We look forward to an active year of supporting our sponsor partners in new buyouts and in growing their portfolio companies, while forging and enhancing new relationships in the sponsor community.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 4-22-13
