Prospect Capital has provided floating-rate senior-secured financing to support the recapitalization of Traeger Pellet Grills by Trilantic Capital Partners.
“Prospect spent a significant amount of time understanding Traeger and its industry, allowing Prospect to provide a differentiated and attractive financing package to the company,” said Charles Moore, a Partner at Trilantic.
Traeger Pellet Grills is a designer, manufacturer and marketer of wood pellet grills, wood pellets, sauces & spices, and grilling accessories. The company sells its products through a dealer network, online and through a direct sales force at selected retailers, trade shows, fairs, rodeos, and other outdoor events. In 2012, the company began the rollout of Traeger-branded stores in major shopping malls across the country. Traeger operates three wood pellet mills in Oregon, Georgia and Iowa; warehouse and logistics locations in Oregon, Colorado and Tennessee; and a facility in Utah where it recruits and trains it sales force. The company also has a team in China dedicated to manufacturing quality and supply chain management. Traeger was founded in 1985 and is headquartered in Wilsonville, OR (www.traegergrills.com).
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 an array of industries and is effectively industry agnostic. Prospect Capital is headquartered in New York (www.prospectstreet.com).
“Prospect has now closed multiple transactions with Trilantic, demonstrating our deep relationships with private equity sponsors,” said David Moszer, a Managing Director at Prospect. “Because of our expansive balance sheet, Prospect could close the entire term loan for Traeger as the sole lender, and we look forward to supporting the future growth of the company.”
Prospect has closed more than $1.5 billion of originations in 2013, including nearly $800 million in originations in the 2nd quarter. Prospect has closed more than $3 billion of originations in the twelve months ended June 30, 2013.
Trilantic Capital Partners makes control and significant minority investments in North America and European companies. Sectors of interests include consumer, energy, financial and business services. Trilantic was formed in 2009 by the former principals of Lehman Brothers Merchant Banking. Trilantic currently manages two institutional private equity funds with total capital commitments of $5.6 billion. The firm is based in New York (www.trilantic.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 7-9-13
