Wellspring Capital Management has completed a recapitalization of its portfolio company API Heat Transfer. The recap includes a new $300 million first-lien credit facility which will provide API with additional financial flexibility to invest in its business and enable the company to pay its investors a dividend.
“API’s ability to secure this new credit facility reflects the company’s strong performance under Wellspring’s ownership. The company’s enhanced capital structure enables it to return capital to investors while pursuing a range of attractive growth opportunities,” said William Dawson, Jr., a Managing Partner of Wellspring.
UBS Securities, RBC Capital Markets and GE Capital Markets acted as Joint Lead Arrangers and Joint Bookrunners for the credit facility. UBS Securities acted as Syndication Agent, RBC Capital Markets acted as Documentation Agent and General Electric Capital Corporation acted as Administrative Agent.
API Heat Transfer designs and manufactures industrial heat exchangers. The company operates through two subsidiaries: (1) ThermaSys Corporation is a manufacturer of heat exchangers and heat exchanger components, including aluminum and brass seam-welded tubing; and (2) API Heat Transfer, a manufacturer of heat exchangers with a complementary product line and geographic distribution to ThermaSys. The company is based in Buffalo, NY (www.apiheattransfer.com).
Wellspring Capital Management acquired ThermaSys Corporation in January 2012 from Sun Capital Partners and API Heat Transfer in April 2012 from Industrial Growth Partners.
“The combination of API Heat Transfer and ThermaSys last year created a premier supplier of heat exchangers that is well positioned to provide its customers with the industry’s best products and service. We are excited to continue our operational and financial support of API as the management team executes its business strategy,” said John Morningstar, a Partner of Wellspring.
Wellspring Capital Management is a middle-market private equity firm that manages more than $3 billion of private equity capital. The firm was founded in 1995 and is based in New York (www.wellspringcapital.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 5-6-13
