April 30, 2014
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Archives for April 30, 2014

Golub Capital Leads Dividend Recap of DSI Renal

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golub2Golub Capital acted as Co-Lead Arranger for a $400 million first lien credit facility to support the dividend recap of Dialysis Newco (dba DSI Renal) by Frazier Healthcare and New Enterprise Associates.  Golub Capital has been a debt provider to DSI Renal since April 2012. Frazier Healthcare and New Enterprise Associates acquired DSI Renal in September 2011.

magnano nf1“Consistent with our past experiences, the healthcare team from Golub Capital was solutions oriented and flexible, ultimately providing significant momentum to our financing needs.  Golub Capital’s transparency and efficiency allowed us to maintain our focus on growing the business” said Ben Magnano, a Partner at Frazier Healthcare.

DSI Renal is a provider of dialysis services to patients suffering from chronic kidney failure. Together with the company’s physician partners, DSI owns and operates over 90 dialysis clinics in 22 states. DSI Renal is headquartered in Nashville (www.dsi-corp.com).

robertson nf1“The dialysis space is one which we’ve invested in on numerous occasions given the growth and stable outlook in the sector.  DSI’s management team, led by Craig Goguen, along with the backing and strategic oversight from both Frazier and NEA, have created one of the leading players in the space and are well positioned for continued success” said Stefano Robertson, a Managing Director and head of the healthcare team at Golub Capital.  “We are pleased to have been able to support them in a meaningful way with this transaction and expect to continue to do so in the future.”

Golub offers buy-and-hold products ranging from $10 million to $75 million and includes one-loan financings, senior, 2nd lien and subordinated debt, preferred stock and co-investment equity. The firm underwrites and syndicates first lien loans up to $300 million. Golub Capital will hold up to $200 million per transaction. Industries of interest include consumer products, business and consumer services, defense, manufacturing, value-added distribution, media, healthcare services and restaurants. Golub has offices in New York and Chicago (www.golubcapital.com).

Makhzoumi nf1“This is our third transaction with Golub Capital’s healthcare team in the past three years and it continues to be a wonderful relationship.  I have always found their team to uniquely understand how best to support our high growth portfolio companies by tailoring their financings accordingly.  We look forward to working with them again,” said Mohamad Makhzoumi, a Partner at NEA and head of their healthcare services practice.

New Enterprise Associates invests in information technology, healthcare and energy technology companies at all stages in a company’s lifecycle, from seed stage through IPO. The firm has approximately $13 billion in committed capital.  The firm has offices in Menlo Park; Boston; New York; Chicago; and Washington, DC; Bangalore; Mumbai; Beijing; and Shanghai (www.nea.com).

Frazier Healthcare is a provider of growth equity and venture capital to high growth and emerging healthcare service, biopharma and medical device companies. The firm has over $1.8 billion of capital under management. Frazier Healthcare was founded in 1991 and has offices in Seattle and Menlo Park (www.frazierhealthcare.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-30-14

Maranon Adds New Principal

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maranon nf2Darin Schmalz has joined Maranon Capital as a Principal. In his new role Mr. Schmalz will be responsible for sourcing and evaluating investment opportunities as well as transaction execution and portfolio management with a particular focus on Maranon’s senior debt and unitranche strategies.

“We are very pleased to have Darin join Maranon Capital” said Rich Jander, a Managing Director at Maranon Capital. “His experience is anchored in middle market credit, but Darin also brings capital markets expertise which is important as we continue to build on the array of credit-focused investment strategies under management at Maranon.”

schmalz nf1Mr. Schmalz has over 16 years of experience in structured credit, leveraged lending and investment analysis.  Most recently, he was a Director with Fitch Ratings with responsibility for the firm’s US private rating business as well as commentary and research on the leveraged loan and high yield markets. His previous experience also includes underwriting and investment management roles at CapitalSource, Antares Capital (now GE Antares), JP Morgan Securities, BNP Paribas and Van Kampen Investments.  Mr. Schmalz earned an MBA from DePaul University and a BBA from the University of Notre Dame.

Maranon Capital provides senior financing, mezzanine debt and equity co-investments for private equity-backed and non-sponsored middle market transactions. The firm is currently managing over $1 billion of committed capital. In October of 2013, Maranon Capital held a final close of Maranon Senior Credit Fund II at its target level of $330 million. Maranon has offices in Chicago, IL; Birmingham, MI (near Detroit) and South Bend, IN (www.maranoncapital.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-30-14

Steelpoint Capital Exits Prana

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prana nf1Prana, a maker of yoga gear and a portfolio company of Steelpoint Capital, has signed an agreement to be acquired by Columbia Sportswear Company for $190 million. The purchase price equates to approximately 13 times Prana’s projected 2014 EBITDA.  Steelpoint Capital acquired Prana from Liz Claiborne in April 2008 for approximately $37 million.

Prana is a designer, marketer, and retailer of climbing, yoga and active lifestyle apparel that is functional, environmentally friendly and designed to cross over into everyday clothing.  Prana’s products are currently sold through specialty and online retailers across North America, as well as company-owned direct-to-consumer channels that include 5 US retail stores (Boulder, Portland, Denver, San Francisco, and Minneapolis), a US e-commerce site and direct-mail catalogs.  The company was founded in 1993 and is based north of San Diego in Carlsbad, CA (www.prana.com).

Prana’s sales grew at a compound annual growth rate of more than 30 percent between 2010 and 2013, and are on pace to surpass $100 million in 2014 and generate low double-digit operating margin.

“We are very excited to welcome Prana to Columbia’s brand portfolio,” said Tim Boyle, Columbia’s president and chief executive officer. “Prana is a rapidly growing lifestyle apparel brand positioned at the intersection of today’s healthy, active lifestyles and socially conscious consumerism. A growing number of women and men are embracing Prana’s versatile products that are designed and manufactured with sustainability as a core value.

Steelpoint Capital invests in consumer companies in the health, wellness and fitness sectors. The firm is headquartered north of San Diego in Solana Beach, CA (www.steelpointcp.com).

Columbia Sportswear Company (NASDAW: COLM) manufactures and distributes outerwear and sportswear. The company was founded in 1938 and is headquartered in Portland (www.columbia.com).

“We are thrilled at the prospect of joining Columbia’s portfolio of distinct outdoors brands,” said Prana’s chief executive officer, Scott Kerslake. “Prana is a brand founded on designing stylish, functional, active apparel made in an environmentally sustainable way. With Columbia’s financial strength, operational expertise, and global market platform, we now will be able to reach a much broader audience of socially conscious consumers worldwide.”

Prana will remain headquartered in Carlsbad and operate as a wholly owned subsidiary of Columbia Sportswear with Mr. Kerslake continuing to serve as chief executive officer reporting directly to Columbia president and CEO Tim Boyle.

Columbia intends to fund the purchase of Prana from available cash and expects the transaction to close during the second quarter of 2014.

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-30-14

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