Prospect Capital has provided $215 million of first lien senior secured credit facilities to support the recapitalization of Pacific World Corporation, a portfolio company of Levine Leichtman Capital Partners.
The $215 million financing provided by Prospect marks the eleventh time in the last two years that Prospect has invested over $100 million in a single transaction. Currently with over $7 billion of capital under management, Prospect has closed over $2 billion of new originations so far in calendar year 2014.
“We are excited to provide a one-stop financing solution to Pacific World,” said Richard Carratu, a Managing Director of Prospect Capital Management. “We welcome the opportunity to support Levine Leichtman and the Pacific World management team as they continue to grow the business.”
Pacific World Corporation, acquired by Levine Leichtman in February 2009, is a developer and supplier of nail and beauty care products to consumers through food, drug, and mass retail channels worldwide. Company brand names include Nailene, Fingr’s, TRIM, Revlon, geoGiRL and Bio Oil. Pacific World was founded in 1973 and is headquartered south of Newport Beach in Aliso Viejo, CA (www.pacificworldcorp.com).
“We have enjoyed working with Prospect on our first transaction together,” said Kimberly Pollack, a Partner at Levine Leichtman. “Prospect’s responsiveness and ability to provide a large one-stop financing solution were integral to the success of this transaction, and we look forward to growing our relationship with the Prospect team.”
Prospect invests 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. Currently with over $7 billion of capital under management, Prospect closed approximately $3.3 billion of new originations during the year ended March 31, 2014. The firm is headquartered in New York (www.prospectstreet.com).
Levine Leichtman manages approximately $7 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is currently making new investments through Levine Leichtman Capital Partners V, LP; Levine Leichtman Capital Partners SBIC Fund, LP; and Levine Leichtman Capital Partners Private Capital Solutions II, LP. The firm is based in Los Angeles with offices in Chicago, Dallas, New York and London (www.llcp.com).
2014 PEPD • Private Equity’s Leading News Magazine • 9-29-14