Financing

CIT Group has provided a senior secured credit facility to United Recovery Systems, a provider of third-party contingency debt collection services owned by Audax Group.  The financing was provided by CIT to facilitate the acquisition of Enterprise Recovery Systems, a provider of collection services.

“We are pleased to have arranged this financing that supports United Recovery Systems’ acquisition of Enterprise Recovery Systems,” said Jay Baldinelli, Managing Director, CIT Sponsor Finance. “This transaction underscores CIT’s commitment to provide financing to our middle market and private equity clients to help them grow and expand their businesses.”  CIT Commercial & Industrial served as Sole Lead Arranger and Administrative Agent for the financing.

Enterprise Recovery Systems is a provider of debt collection services with offices in Oak Brook, IL and Covington, KT.  The company’s customers include post-secondary education providers, student loan guarantee agencies, and the Department of Education (www.ersinc.com).

“CIT’s in-depth market knowledge was instrumental in our decision making process and we look forward to continuing to build our relationship with CIT as we execute on future acquisitions,” said Mark Cordes, Managing Director of Audax Group.

United Recovery Systems provides accounts receivable management services to the nation’s leading credit grantors. The company is headquartered in Houston, TX with offices in Tulsa, OK; Monterrey, Mexico; Tempe, AZ; and Bryan, TX (www.unitedrecoverysystems.com).

The Audax Group  makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace and defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston, MA and New York, NY (www.audaxgroup.com).

CIT is a bank holding company with more than $34 billion in assets. Sectors of interest include small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and vendor finance.  CIT was founded in 1908 and based in New York, NY (www.cit.com).

April 26, 2012 –  Golub Capital has provided $18.9 million in subordinated notes for the refinancing of The Atlas Group, a portfolio company of Graham Partners.  “Golub Capital demonstrated its flexibility by offering multiple capital structure alternatives in support of the refinancing. We value Golub Capital’s long-term commitment to the company,” said Christopher Lawler, Managing Principal at Graham Partners. Atlas was originally acquired by Graham in March 2007.

The Atlas Group is a manufacturer of high precision machine parts, assemblies, and replacement parts to aerospace original equipment manufacturers and Tier 1 suppliers. The company focuses on the production of structural and flight control components and assemblies that are highly complex and often flight critical, installed from the cockpit to the tail of the aircraft. The Atlas Group is headquartered in Wichita, KS (www.theatlasgroup.biz).

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 also underwrites and syndicates first lien loans up to $200 million. Golub Capital’s will hold up to $100 million per transaction.  Industries of interest include consumer products, business and consumer services, defense, manufacturing, value-added distribution, media, healthcare services and restaurants. In addition to its New York headquarters, Golub also has offices in Atlanta, GA; and Chicago, IL (www.golubcapital.com).

“We are excited to continue our longstanding partnership with Graham Partners and its portfolio company, The Atlas Group,” said Golub Capital Senior Managing Director Greg Cashman. “The company’s management team has an excellent track record of growing its value-added capabilities and content on next generation platforms. We are excited to support The Atlas Group’s continued growth.”

Graham Partners is a lower middle market industrial private equity firm with over $1.5 billion under management. Graham Partners is sponsored by the privately held Graham Group of York, PA, an industrial and investment concern with interests in plastics, packaging, machinery, building products and outsource manufacturing. Graham Partners seeks to acquire industrial companies with revenues between $30 million and $500 million that participate in manufacturing niches where it can leverage its combination of operating resources and financial expertise. The firm is located in Philadelphia, PA (www.grahampartners.net).

NXT Capital has provided a $20 million senior secured facility to finance Great Hill Partners’ acquisition of Legacy.com. NXT Capital was the Sole Lead Arranger, Sole Bookrunner and Administrative Agent for this transaction.

Legacy.com provides online obituary and memorial services to more than 800 newspapers in the North America, Europe, Australia and New Zealand. The company’s online obituary sites draw 20 million unique visitors each month through its partnership with 85 of the 100 largest newspapers in the United States. The comapny is based in Evanston, IL (www.Legacy.com).

Great Hill Partners manages over $2.5 billion in capital to finance the expansion, recapitalization or acquisition of growth companies in a wide range of sectors within the media/communications, Internet, business services, consumer services, financial technology, healthcare technology, software, and transaction processing sectors. GHP targets investments of $25 million to $150 million. The firm is based in Boston, MA (www.greathillpartners.com).

NXT provides structured financing solutions to middle-market and growth companies through its Corporate Finance, Real Estate Finance and Venture Finance groups, originating transactions directly on a national basis. The company targets senior financing opportunities of up to $150 million with a hold size up to $50 million. NXT Capital is led by former principals of Merrill Lynch Capital and was formed in 2010 by Stone Point Capital and the founding management team. The firm is based in Chicago, IL (www.nxtcapital.com).

Golub Capital has provided $27.5 million in subordinated notes and co-investment equity in connection with the acquisition of 54 Fresenius Medical Care clinics by DSI Renal. DSI Renal is a portfolio company of Frazier Healthcare and New Enterprise Associates.

DSI Renal is a provider of dialysis services to patients suffering from chronic kidney failure. With this acquisition, DSI Renal will operate 85 clinics across 23 states and provide care to more than 6,500 dialysis patients. The company is based in Nashville, TN (www.dsi-corp.com).

“Working with Golub Capital’s Healthcare Finance team was a real pleasure. They proved to be a value-added partner with whom we could discuss preliminary ideas, as we ultimately closed the deal using structure and economic terms similar to what they recommended early in the process. We look forward to working with them again,” said Brian Morfitt, a Partner at Frazier Healthcare.

Frazier Healthcare is a provider of growth equity and venture capital to high growth and emerging healthcare service, biopharma and medical device companies. The firm has over $1.8 billion under management. Frazier Healthcare was founded in 1991 and has offices in Seattle, WA and Menlo Park, CA (www.frazierhealthcare.com).

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 also underwrites and syndicates first lien loans up to $200 million. Golub Capital’s will hold up to $100 million per transaction. Industries of interest include consumer products, business and consumer services, defense, manufacturing, value-added distribution, media, healthcare services and restaurants. In addition to its New York headquarters, Golub also has offices in Atlanta, GA; and Chicago, IL (www.golubcapital.com).

“The Golub Capital Healthcare Finance team has a very positive view on the dialysis space, having invested in the sector multiple times. We started talking to Frazier Healthcare about their own interest in the sector mid-last year, so this investment represents one that developed very nicely over time,” said Stefano Robertson, a Managing Director and Head of Healthcare Finance at Golub Capital. “Throughout the process, both Frazier Healthcare and NEA exhibited their deep domain knowledge and experience dealing with multi-faceted transactional issues. We look forward to working closely with both sponsors throughout the course of the investment, and to helping DSI Renal execute their business plan.”

NEA invests in information technology, healthcare and energy technology companies at all stages in a company’s lifecycle, from seed stage through IPO. The firm has approximately $11 billion in committed capital. NEA has offices in the Washington, DC; Menlo Park, CA; and New York, NY (www.nea.com).

Main Street Capital announced today that it has invested $6.8 million in AmeriTech College Operations, a healthcare focused for-profit college. Main Street’s investment in AmeriTech consists of $6.8 million in first lien, senior secured debt. Main Street’s investment provides growth financing to expand the school’s healthcare programs and its development of baccalaureate degree programs.

AmeriTech is a private, for-profit college focused on providing healthcare training programs such as nursing, medical assisting, medical billing and coding, surgical technicians, and dental assisting. With two traditional campuses located in Draper, UT, and Provo, UT, and through its online programs, AmeriTech offers associate degrees as well as diplomas and is accredited with the Department of Education and nationally accredited with specialty healthcare education accrediting agencies. The company is headquartered near Salt Lake City, UT (www.ameritech.edu).

Main Street Capital provides long-term debt and equity capital to middle market and lower middle market companies in diverse industry sectors that generally have annual revenues ranging from $10 million to $100 million. Main Street generally provides “one stop” financing alternatives within its lower middle market portfolio. The firm is based in Houston, TX (www.mainstcapital.com).

Prospect Capital Corporation has provided $31.1 million of senior secured debt to VanDeMark Chemical, a specialty chemical manufacturer and a portfolio company of Buckingham Capital Partners. “Prospect’s responsiveness enabled an on-time execution of a complex refinancing that we desired to close before year end,” said Albert Naggar, a Managing Partner of Buckingham. “We look forward to working with Prospect in the future.”

VanDeMark manufactures phosgene and phosgene derivatives to serve the global pharmaceutical, agricultural-chemical, polymer, and fine chemical industries. The company is based in Lockport, NY (www.vdmchemical.com).

“We are delighted to support Buckingham in its recapitalization of VanDeMark,” said Bart de Bie, a Managing Director with Prospect Capital Management. “Prospect has significant domain expertise in the specialty chemicals industry in addition to other industry verticals.”

Prospect invests from $10 million to $75 million 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 wide array of industries and is effectively industry agnostic. Prospect Capital is located in New York, NY (www.prospectstreet.com).

Buckingham Capital Partners makes control equity investments of $2 million to $15 million in leveraged and management buyouts and recapitalizations of industrial and manufacturing companies in the $10 million to $100 million valuation range. The firm is based in New York, NY (www.buckinghamcapital.com).