Abacus Finance Group, a provider cash-flow senior financing for private equity-sponsored, lower-middle market companies, was the Administrative Agent and Sole Lead Arranger for a $20.5 million senior secured credit facility to support the May 2016 acquisition of Pacific Handy Cutter, a portfolio company of American Capital, by Levine Leichtman Capital Partners (LLCP).
Pacific Handy Cutter is a designer, manufacturer and marketer of safety cutters, utility knives, blades, and other accessories used in commercial backroom operations in the grocery, retail, quick serve restaurant, and industrial warehouse end markets. Brand names include Safety Cutter, Pacific Handy Cutter, QuickBlade, and the Utility Knife series. The company was founded in 1950 and is headquartered in Costa Mesa, CA (www.go-phc.com).
“This was our first transaction with Abacus, and they lived up to what is an excellent reputation,” said LLCP Partner Michael Weinberg. “Their proposal was very competitive, they were flexible when it came to structuring the transaction, and they were able provide us certainty of closure early on.”
Abacus provides cash flow senior financing to private equity-sponsored, lower-middle market companies that have EBITDA between $3 million and $15 million. Debt facilities can be as large as $60 million with a typical hold size ranging from $10 million to $30 million. Abacus is an affiliate of New York Private Bank & Trust, the holding company for Emigrant Bank, founded in 1850. Abacus is based in New York (www.abacusfinance.com).
“As Mike noted, this is a new relationship, and the partners of LLCP brought us a terrific company,” said Tim Clifford, President and CEO of Abacus. “Pacific Handy Cutter is a leader in its field with a long track record. As is the case in many of our transactions, early assurance of close – one of the key ingredients of what we call our Total Partnership Approach™ – was of critical importance for the sponsor.” Other Abacus team members involved in the transaction included Eric Petersen and Brian Green.
Levine Leichtman manages approximately $7.5 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is based in Los Angeles with offices in Chicago, Dallas, New York, London and The Hague (www.llcp.com).
Legal counsel was provided to Abacus by Goulston & Storrs. (www.goulstonstorrs.com).
© 2016 Private Equity Professional • 8-23-16