Financing

American Capital announced today the closing of a $750 million senior secured revolving credit facility, provided by Bank of America.  The facility, which matures in June 2016, bears interest at a rate of LIBOR plus 1.60%.

“This new revolving credit facility provides American Capital with greater flexibility and financial capacity to invest in senior secured floating rate loans, which, if appropriately levered as allowed under the facility, can enhance our net operating income and more effectively use our balance sheet,” said Malon Wilkus, Chairman and CEO of American Capital.

American Capital (NASDAQ: ACAS) is a publicly traded private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in lower and middle market private equity, leveraged finance, real estate and structured products. From its eight offices in the US and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $750 million.  Founded in 1986, American Capital has $84 billion in total assets under management and is headquartered in Bethesda (www.AmericanCapital.com).

2014 PEPD • Private Equity’s Leading News Magazine • 7-1-14

Monroe Capital has provided a senior secured credit facility to support the spin-off of BCC Software from its former parent, Bell and Howell, by private equity sponsor Versa Capital Management.  Versa now holds majority ownership positions in both Bell and Howell and BCC.

BCC Software creates postal software applications and provides data marketing services. The company was founded in 1978 and delivered mailing technology solutions under the BCC name for more than 30 years until its purchase by Bell and Howell in 2005. BCC employs approximately 75 people and is based in Rochester, NY (www.bccsoftware.com).

Christopher Lien, President of BCC, will continue to lead the company. Mr. Lien has spent more than 22 years in the data and mailing industries and has received national recognition for his contributions, most recently in his industry election as Industry Chair of the Postmaster General’s Mailers Technical Advisory Committee, a 49-year-old organization with more than 150 members of the mailing industry.

Since launching the firm’s national technology vertical, Monroe Capital has partnered with many of the country’s private equity and venture capital firms to finance software, e-commerce, industrial technology and tech-enabled services companies.

Monroe Capital is a specialty finance company providing senior and junior debt and equity co-investments to middle-market companies. The firm was founded in 2004 and maintains offices in Chicago, Atlanta, Boston, Charlotte, Dallas, Los Angeles, New York and San Francisco (www.monroecap.com).

Versa Capital Management invests in special situations involving middle market companies with revenues in the $50 million to $1 billion range or assets of $25 million to $500 million. The firm has $1.4 billion of capital under management and is based in Philadelphia (www.versa.com).

2014 PEPD • Private Equity’s Leading News Magazine • 6-24-14

A new company backed by AIG and Oak Hill Capital Management has been formed today with the launch of Varagon Capital Partners, a direct lender to middle market companies. Varagon launches with an initial $1.5 billion investment commitment from AIG.

Varagon offers first-lien, unitranche and second-lien loans, as well as mezzanine financing, to companies with $10 million to $75 million of EBITDA. Varagon targets leveraged finance opportunities of up to $350 million and has a typical hold size of $20 million to $100 million.  Varagon is headquartered in New York (www.varagon.com).

Varagon is led by CEO, Walter Owens, an experienced middle market finance executive who has held leadership positions at GE Capital, CIT Group, and TD Bank.  “Varagon’s versatile product suite creates a ‘one-stop’ financing solution for borrowers,” said Mr. Owens. “Varagon’s investors have a broad appetite for attractive risk-adjusted returns, allowing Varagon to offer competitive financing solutions up and down the capital structure.”

Denis Nayden, a Managing Partner of Oak Hill and former Chairman and CEO of GE Capital, serves as the Chairman of Varagon’s Board of Directors. Varagon’s Board also includes independent directors with industry expertise such as Michael Gaudino, former CEO of GE Corporate Financial Services, and Morris Offit, Chairman of Offit Capital, both serve on Varagon’s Board of Directors.

“Varagon developed from our belief that there is an opportunity to better serve both borrowers and investors in the middle market,” said Mr. Nayden. “Varagon offers investors a superior means to invest in middle market credit, providing highly attractive risk-adjusted returns through tailored, transparent investment solutions.”

“We are excited about the opportunity to partner with Varagon,” said Brian Schreiber, Deputy Chief Investment Officer of AIG and a member of Varagon’s Board of Directors. “As a long-term investor, AIG is drawn to the strong fundamentals of the middle market opportunity. Varagon offers sophisticated investors clear, attractive, and flexible exposure to high quality, directly-originated assets with best-in-class risk management.”

American International Group – also known as AIG – is an American multinational insurance corporation with more than 88 million customers around the globe. The company operates through two segments: AIG Property Casualty and AIG Life and Retirement. AIG’s corporate headquarters are in New York, its British headquarters are in London, continental Europe operations are based in La Défense, Paris, and its Asian headquarters is in Hong Kong.  AIG serves customers in more than 130 countries around the world and employs over 64,000 people in more than 90 countries (www.AIG.com).

Oak Hill Capital Partners has $8 billion of committed capital and invests in the following six sectors: basic industries; business and financial services; consumer, retail & distribution; healthcare; media & telecom; and technology. Over the past 25 years, the professionals at Oak Hill Capital Partners and its predecessors have invested in more than 70 private equity transactions. The firm is located in Stamford, CT (www.oakhillcapital.com).

2014 PEPD • Private Equity’s Leading News Magazine • 6-11-14

Brookside Mezzanine Partners has made an investment in Northwest Cosmetic Laboratories (NCL). Brookside Mezzanine Partners provided the subordinated debt along with an equity co-investment to support the acquisition of NCL by Clearview Capital.

NCL is a rapidly growing formulator and manufacturer of innovative skincare and cosmetic products for prestige branded cosmetic and personal care companies. The company was founded in 1995 and headquartered in Idaho Falls, ID (www.trustncl.com).

Clearview Capital is a leading middle-market private investment firm that invests exclusively alongside management in manufacturing and service companies with strong prospects for growth. Clearview’s Fund III will continue the same investment strategy of its two predecessor funds by providing subordinated debt and minority equity to small and mid-sized companies seeking capital to support buyouts, leveraged recapitalizations, strategic acquisitions, dividends and growth capital. Brookside will invest up to $20 million per transaction, with the resources to complete larger transactions as well.

Founded in 2001, Brookside Mezzanine Partners manages in excess of $500 million across three mezzanine funds.  The firm is a provider of subordinated debt and minority equity capital to small and mid-sized companies throughout the United States. We invest in both sponsored and non-sponsored transactions and provide junior capital and unitranche financing to support buyouts, leveraged recapitalizations, strategic acquisitions, dividends and growth capital.  Brookside will invest up to $20 million per transaction, with the resources to complete larger transactions as well.  Brookside Mezzanine Partners was founded in 2001 and has offices in Stamford, CT and Boston, MA (www.brooksidemezzanine.com).

2014 PEPD • Private Equity’s Leading News Magazine • 6-9-14

GE Antares served as administrative agent on a $107 million multi-currency, cross-border credit facility to McLarens Global, a portfolio company of Altamont Capital Partners which first invested in the company in September 2011.

The GE-McLarens transaction refinanced the company’s senior debt, repaid its subordinated debt and provided flexibility for future acquisitions. GE Capital Markets served as lead arranger and joint book runner on this facility.

“This financing strengthens our financial position in order to grow, both here in the US and abroad,” said Toby Skelton, chief financial officer of McLarens, “We continue to benefit from our relationships with the GE team.”

McLarens performs claims management, loss adjusting, pre-risk and damage surveying, and auditing services for companies throughout the world. The company is headquartered in Atlanta (www.mclarens.com).

“I’m pleased GE Capital was able to deliver its cross-border capabilities and expertise on a complex transaction for McLarens and its private equity owner, Altamont Capital Partners,” said James Kenefick, senior managing director of GE Antares, “We look forward to working with McLarens as the company continues to grow.”

GE Antares is a unit of GE Capital with offices in Atlanta, Chicago, Los Angeles, New York, and San Francisco. Specializing in the middle market, GE Antares is a “one-stop” source for GE’s lending and other services to middle market private equity sponsors (www.geantares.com).

“We’re pleased to have the opportunity to work with our colleagues in the U.S. on closing this transaction for McLarens,” said Howard Sharp, head of UK originations and sponsor coverage of GE Capital, “By partnering together, we are able to meet the global needs of our sponsors and their portfolio companies.”

Altamont Capital Partners invests in middle market businesses with specific interest in the government services, financial services, consumer/retail, industrials, and healthcare sectors.  Altamont has approximately $1.3 billion of capital under management.  The firm was formed in 2010 by Jesse Rogers, Randall Eason and Keoni Schwartz who previously worked together at Golden Gate Capital and Bain & Company.  Altamont Capital Partners is based in San Francisco (www.altamontcapital.com).

2014 PEPD • Private Equity’s Leading News Magazine • 6-9-14

TCF Capital Funding has provided $7 million of secured financing to support the acquisition of Ascent Aviation Services Corporation, a portfolio company of Victory Park Capital, by LongueVue Capital Partners.

Ascent Aviation Services is a Federal Aviation Administration licensed provider of maintenance, repair, and overhaul services for multiple platforms of aircraft. Ascent specializes in heavy maintenance, teardown, storage, and line maintenance services.  The company’s facilities are located at Tucson International Airport and the company is headquartered in Tucson (www.ascentmro.com).

“We are pleased to partner with the Ascent and LongueVue,” said TCF Capital Funding Senior Vice President Thomas Karle. “We look forward to supporting the company as it goes through its next stage of expansion.”

TCF Capital Funding provides asset-based loans and private equity sponsor-backed cash flow loans to companies with less than $100 million in revenue and between $2 million and $10 million in EBITDA.  The firm is led by Joseph Gaffigan, President, and is based just outside Chicago in Burr Ridge, IL (www.tcfcapitalfunding.com).

LongueVue Capital makes equity and debt investments in lower middle market companies that have up to $100 million of revenue. Sectors of interest include manufacturing, business services, energy services, and third party logistics. The firm was founded in 2001 and is based in New Orleans with additional offices in New York and Salt Lake City (www.lvcpartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 6-9-14