Golub Capital was the Joint Lead Arranger, Joint Bookrunner and Administrative Agent on a $330 million senior credit facility to support the refinancing of ILC Industries, a portfolio company of Behrman Capital.
ILC Industries, which was acquired by Behrman Capital in April 2003, is a manufacturer of engineered electronic components for the military and aerospace and defense end-markets, with components for nearly every aircraft, ground vehicle, and weapons system in the US military. The company’s main operating subsidiary is Data Device Corp. which makes and sells microelectronic components used in data conversion and networking products (cards, software, and fiber channel switches) for use in the defense, space, and aerospace industries. The DDC headquarters, design and manufacturing operations are located in Bohemia, NY (www.ddc-web.com). In 2011, ILC spun off its oldest subsidiary ILC Dover which manufactured softgoods such as blimps, spacesuits, and chemical-biological warfare protection gear, for industrial, military, and space applications.
“With their strong market leadership, mission critical products, sole-sourced position on key platforms and excellent management team, ILC Industries is well positioned to capitalize on the attractive opportunities in the military and commercial markets,” said Andrew Steuerman, Head of Middle Market Lending at Golub Capital. “We are excited to partner with this exceptional company and sponsor.”
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).
Behrman Capital invests in management buyouts, leveraged buildups and recapitalizations of established growth businesses. The firm’s investments are primarily focused in four industries: health care, specialty manufacturing, business to business outsourcing and defense. The firm has raised five funds with a combined capital base in excess of $3.0 billion. Behrman Capital was founded in 1991 by Grant G. and Daryl G. Behrman and has offices in New York and San Francisco (www.behrmancap.com).
In April 2014 Behrman Capital completed a $570 million recapitalization of another of its portfolio companies, Pelican Products. Proceeds from the recapitalization were used to repay existing debt and accrued interest, pay fees and expenses, and pay a cash dividend to the shareholders of Pelican. The recapitalization was comprised of a $365 million first-lien term loan, a $175 million second-lien term loan, and a $30 million revolving credit facility, which was unfunded at close. Credit Suisse and Morgan Stanley acted as syndication agents and co-bookrunners on the transaction, and Credit Suisse was the administrative agent.
2014 PEPD • Private Equity’s Leading News Magazine • 7-16-14