Babson Capital Backs Stone Arch Portfolio Company Recap
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Babson Capital Backs Stone Arch Portfolio Company Recap

Babson Capital Management has provided subordinated debt and made an equity co-investment to support Stone Arch Capital’s recapitalization of its portfolio company, Asset Marketing Services, a marketer of high-value collectible coins, jewelry and watches.  Babson Capital served as the lead provider of subordinated debt on the transaction.  Stone Arch Capital acquired Asset Marketing Services in 2009.

“Babson Capital’s deep experience in financing lower-middle-market companies and its longstanding relationship with Stone Arch Capital combined to make the recapitalization of Asset Marketing Services an efficient and seamless transaction,” said Charlie Lannin, Managing Partner of Stone Arch Capital. “The expertise and relationship-oriented approach of Babson Capital’s Mezzanine & Private Equity Group have made them a value-added partner on every investment we have been involved in together.”

Asset Marketing Services (AMS) is a multi-channel direct marketer of high-value collectible coins and proprietary branded jewelry and watches.  The coin division of AMS sources and markets rare and historical coins as well as new releases from government monetary authorities, distributors and wholesale dealers worldwide.  AMS’ jewelry division, known as “Stauer”, designs, sources, brands and markets high-quality jewelry and watches at affordable prices. The company is based in Burnsville, MN (www.amsi-corp.com).

“Babson Capital is grateful for the opportunity to participate alongside Stone Arch Capital in the recapitalization of AMS,” said Bob Erwin, Managing Director and a senior member of Babson Capital’s Mezzanine & Private Equity Group. “As a limited partner in Stone Arch Capital’s funds, we have tracked the significant growth and value created by Stone Arch Capital and AMS’ management since the original acquisition of AMS by Stone Arch Capital in 2009.  AMS is well-positioned to generate additional growth and value going forward.”

Babson Capital had $154 billion in assets under management as of September 30, 2012 and is a member of the MassMutual Financial Group. The firm is based in Boston and Springfield, MA and Charlotte, NC and has six additional offices in the US and one in Sydney, Australia, with subsidiaries in London and Tokyo (www.BabsonCapital.com).

Stone Arch Capital invests from $10 million to $25 million in Midwest-based lower middle-market companies with EBITDA greater than $5 million.  Sectors of interest include manufacturing and service industries, excluding real estate, technology, and commodity industries.  The firm is located in Minneapolis, MN (www.stonearchcapital.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-15-12

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