Financing

Abacus Finance Group was the Administrative Agent and Sole Lead Arranger for senior secured credit facilities to support the acquisition of Right Networks by BV Investment Partners.

Right Networks is a hosting and services provider for QuickBooks desktop accounting software and other applications – more than 400 – used by accountants and small and medium sized businesses (SMBs). The company has more than 25,000 SMB customers and is essentially the outsourced provider of data storage and information technology services and infrastructure. Right Networks was co-founded in 2002 by John Farrer and Philip Romine and is headquartered near Nashua in Hudson, NH (www.rightnetworks.com).

“This was our first transaction with Abacus, and we were really impressed by the speed and efficiency of their due diligence process,” said Matthew Kinsey, a partner in BV Investment Partners.

BV Investment Partners makes investments in companies active in the information and business services, and communications industries. Since its founding in 1983, the firm has invested over $2.9 billion in more than 86 companies.  BV Investment Partners is headquartered in Boston (www.bvlp.com).

“Abacus knew the sector, understood the business model and the risks,” said Sean Wilder, a principal of BV Investment Partners, “and we were able to go from mandate to close quickly.”

“This is a new relationship for us and a very promising one,” said Tim Clifford, President and CEO of Abacus. “All of us enjoyed working with Matt, Sean and their colleagues. They brought us a market-leading company, were responsive and easy to work with, and appreciated our strong industry knowledge and the quick close – key elements of what we call our Total Partnership Approach. We look forward to working with them on future transactions.”

Other Abacus team members involved in the transaction included Managing Director Sean McKeever and Senior Associate Jonathan Choa.

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).

© 2016 Private Equity Professional • 10-18-16

Monroe Capital was the sole lead arranger and administrative agent on the funding of a senior term loan to support the acquisition of The Worth Collection, Ltd. by New Water Capital. The Worth Collection had been a portfolio company of L Catterton since 2006.

Monroe Capital provides senior and junior debt and equity co-investments to middle-market companies based in the US and Canada. 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).

The Worth Collection is a direct-to-consumer women’s fashion apparel company that operates the luxury brand “Worth New York” and the contemporary brand “W by Worth”. The company designs, supplies, and distributes its products through multiple channels including its stylist network, by-appointment showrooms, online and retail outlets. The Worth Collection was founded by Caroline Davis, Richard Kaplan and Jay Rosenberg in 1991. Today the company is led by CEO Dave DeFeo and is headquartered in New York (www.worthnewyork.com).

“We are impressed with the strength and stability of the Worth Collection brands and by the fierce loyalty exhibited by its extensive customer base. We are excited to partner with Dave, Jay and the entire Worth team, and look forward to assisting the company to achieve its strategic initiatives,” said John Disa, a Partner at New Water Capital.

New Water invests in lower middle market companies with revenues between $30 and $300 million.  Sectors of interest include consumer products, retail, and industrial manufacturing & services. New Water closed its first private equity fund at the hard cap of $406 million in July 2015. The firm was founded in September 2014 and is based in Boca Raton (www.newwatercap.com).

Rothschild (www.rothschild.com) was the financial advisor to The Worth Collection on this transaction.

© 2016 Private Equity Professional • 10-12-16

PNC Bank Canada has completed a C$17 million financing for Doxim Solutions, a portfolio company of Strattam Capital and a provider of customer communications management software to the financial services industry. The PNC financing included a C$1.9 million senior secured revolver with a C$15.2 million senior secured term loan.  The company will use the funds to refinance existing debt and for working capital needs.

Doxim’s products are used by financial institutions – banks, credit unions and wealth management firms – to communicate with clients and improve selling activities. Specific uses include automated account opening, loan origination, and targeted omni-channel customer communications. Doxim is led by founder and CEO Chris Rasmussen and is based near Toronto in Markham, ON (www.doxim.com).

Strattam Capital invested in Doxim in September 2014. In September 2015, Doxim completed the add-on acquisition of Roler Data, a provider of electronic document services – composition, processing, delivery and archiving – to financial customers. Then in May 2016, Doxim completed a second add-on acquisition with the buy of DigitalMailer, a provider of digital customer communications products used by credit unions and community banks.

Strattam Capital makes control investments in enterprise software, digital infrastructure, and tech-enabled services companies with enterprise values between $20 million and $150 million. The firm has offices in San Francisco and Austin (www.strattam.com).

PNC Bank, headquartered in Pittsburgh (www.pnc.com), is a member of The PNC Financial Services Group (NYSE: PNC). The bank’s services in Canada – commercial deposit, treasury management, lending (including asset-based lending) and leasing products and services are provided by PNC Bank Canada.

© 2016 Private Equity Professional • 10-6-16

Thymes, a portfolio company of Castanea Partners, RCP Advisors, Stanfield Capital and Northstar Capital, has acquired DPM Fragrance.

TCF Capital Funding provided secured financing to support the merger of the two companies which have been renamed CURiO, a new platform in the bath, body, and home fragrance market. Castanea Partners and its co-investors acquired Thymes from Stone-Goff Partners in December 2014.

Thymes’ product line includes soaps, lotions and other bath and body products, as well as home fragrance selections such as candles and diffusers. Thymes products are sold in over 5,000 specialty retail locations in the United States and in 18 countries and territories globally. Company owned brand names include Thymes, Goldleaf and Frasier Fir.  The company was founded in 1982 and is headquartered in Minneapolis (www.thymes.com).

DPM Fragrance makes scented candles that are sold through specialty retailers around the world.  Company owned brand names include Capri Blue and Aspen Bay Candles. The company was founded in 1999 by Tom Reed and is headquartered northeast of Jackson in Starkville, MS (www.dpmfragrance.com).

With closing of the transaction Mr. Reed has become a member of CURiOs’ board of directors. “The synergies between DPM and Thymes are amazing – it’s such a great fit. This is a fantastic next step full of potential and opportunity for the entire team – and for our current and future customers,” said Mr. Reed.

“Thymes and DPM each possess industry-leading fragrances and brands and we are excited to support their merger and CURiO’s future growth.” said TCF Capital Funding Senior Vice President Ed Ryczek.

TCF provides cash flow and asset-based lending to lower middle-market businesses.  National in scope, this senior leveraged lending group focuses on providing private equity sponsor-backed cash flow loans and asset-based loans to companies with less than $100 million in revenue and between $2 million and $10 million in EBITDA.  The firm is based just outside of Chicago in Burr Ridge, IL (www.tcfcapitalfunding.com).

© 2016 Private Equity Professional • 10-4-16

Abacus Finance Group was the Administrative Agent and Lead Arranger for a senior secured credit facility to support the recapitalization of PerTronix by Lineage Capital.

PerTronix is a manufacturer of electronic ignition systems and exhaust products sold under a family of brand names including Flame-Thrower, Ignitor, Second Strike, Doug’s Headers, Spyke, Compu-Fire, Patriot Exhaust, Smithy Mufflers, and others. The automotive aftermarket accounts for approximately 90% of sales with the balance spread among motorcycle, marine, industrial and agricultural customers. The company was founded in 1969 and is headquartered east of Los Angeles in San Dimas, CA (www.pertronix.com).

Lineage Capital specializes in the recapitalization of family-controlled and owner-managed lower-middle market companies that have revenues between $20 million and $250 million and EBITDA of at least $4 million. Sectors of interest include consumer, industrial, service, and distribution businesses. The firm was founded in 2003 and is based in Boston (www.lineagecap.com).

“This was our first transaction with Abacus, and we were more than pleased with the experience, something that came as no surprise because we have worked with the senior members of the Abacus team over many years,” said T. Brook Parker, a Partner with Lineage. “They provided us with the speed and flexibility needed to close the transaction, both of which were critical in this deal. We look forward to working with them on future transactions.”

“It was great to work again with the Lineage principals, some of whom we have known for 15 plus years,” said Tim Clifford, President and CEO of Abacus. “We were excited to be able to support a very highly attractive niche company with an impressive portfolio of brands in the auto enthusiast market. This transaction is a great example of how Lineage’s investment strategy matches up well with our flexibility and our focus on lower-middle market companies – key ingredients of what we call our Total Partnership Approach.”

Other Abacus team members involved in the transaction included Director Aized Rabbani and Associate Rafal Rydzewski.

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).

Legal counsel was provided to Abacus by Goulston & Storrs (www.goulstonstorrs.com).

© 2016 Private Equity Professional • 9-23-16

CIT Healthcare Finance was the Lead Arranger and Administrative Agent for a $242 million senior secured credit facility to Jordan Health Services, a portfolio company of Palladium Equity Partners.

The financing from CIT will be used to refinance Jordan’s existing debt and provide new capital to support future add-on acquisitions. CIT has backed the company since 2007. “This financing will help consolidate our financial position as well as add flexibility for future acquisitions as we grow our footprint and patient populations,” said CEO Scott Herman. “CIT has been a long-term partner and holds extensive knowledge of our business and this industry.”

Jordan Health Services is a provider of personal care, case management, nursing, therapy, and hospice services in Texas, Oklahoma, Arkansas and Louisiana. The company has a team of over 17,000 professionals that provide care to more than 28,000 adult and pediatric patients daily. Jordan Health Services was founded in 1975 and is based in Dallas (www.jhsi.com).

“Since 2010, Jordan has expanded from 28 locations in Texas to about 90 locations in four states serving more than 28,000 patients a day. With a diversified service offering, Jordan is well-positioned as a leading consolidator within the home care industry, having completed over 20 acquisitions since 2010. CIT’s financial support and expertise has been instrumental to Jordan’s growth over the years, and we appreciate their continued collaboration,” said Daniel Ilundain, a Principal of Palladium.

“As the US population continues to age, demand for the services offered by Jordan is expected to grow. Jordan has a strong reputation driven by their quality service, continuum of care programs and utilization of technology-enhanced clinical tools. Palladium has provided Jordan important financial and strategic support as they pursue these opportunities,” said William Douglass, Group Head and Managing Director, CIT Healthcare Finance.

CIT Healthcare Finance is part of CIT Corporate Finance which provides lending, leasing and other financial and advisory services to the small business and middle market sectors with a focus on specific industries, including: chemicals, commercial real estate, communications, energy, entertainment, gaming, healthcare, industrials, information services & technology, restaurants, retail, and sports & media (www.cit.com/corporatefinance). The corporate finance group is part of CIT, a bank holding company with more than $65 billion in assets. CIT was founded in 1908 and is based in New York (www.cit.com).

“We have enjoyed working with the Jordan and Palladium teams on this transaction and look forward to supporting them further as they pursue Jordan’s growth objectives,” said Will Duke, Managing Director, CIT Healthcare Finance.

Palladium invests from $50 million to $150 million of equity in companies that have $10 million to $75 million of EBITDA.  Sectors of interest include business services, consumer, food, financial, healthcare, industrial, energy, and media. Palladium has a focus on companies that operate in the US Hispanic market.  Since its founding in 1997, Palladium has invested over $1.5 billion of capital in more than 25 platform investments and completed over 50 add-on acquisitions. The firm is based in New York (www.palladiumequity.com).

© 2016 Private Equity Professional • 9-21-16

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

Yukon Partners was a co-investor alongside Sorenson Capital in the recent acquisition of Axiom Materials.

Axiom Materials is a composite materials manufacturer with a specialization in “prepreg” materials – (prepreg is a term for “pre-impregnated” composite fibers where a matrix material, such as epoxy, is already present). Axiom sells its products to companies in the aerospace, military, automotive, industrial, sports and medical industries. The company was founded by Johnny Lincoln, Ph.D., and is based near Los Angeles in Santa Ana, CA (www.axiommaterials.com).

Yukon Partners makes subordinated debt and equity investments of $10 million to $40 million in middle market, private equity sponsored business transactions.  The types of transactions that Yukon invests in include buyouts, growth and platform strategies, recapitalizations, mergers & acquisitions, public- to-private buyouts, and refinancings. The firm is based in Minneapolis (www.yukonpartners.com).

“Yukon is excited to partner with Axiom and Sorenson to support the next phase of the company’s growth,” said William Dietz, Managing Partner of Yukon. “Axiom’s reputation as an innovative and leading manufacturer of advanced composite materials positions it well for continued, profitable growth in the evolutionary composites space.”

Sorenson Capital invests from $10 million to $40 million in small to middle-market buyout and growth equity opportunities with a particular focus on companies located in the Mountain and Western regions of the US. The firm has more than $1 billion in capital under management and is headquartered in Salt Lake City (www.sorensoncapital.com).

NXT Capital (www.nxtcapital.com) provided the senior credit facility in support of the transaction.

© 2016 Private Equity Professional • 8-18-16

Abacus Finance Group was the Administrative Agent and Lead Arranger for a $23 million senior secured credit facility to support the recapitalization of Global LT, a portfolio company of Vicente Capital Partners.

Global LT is a provider of outsourced language training and translation services. The company’s programs are available in over 60 languages and are taught via instructor-led, virtual, self-paced and blended formats. Customers of Global LT are typically Fortune 1000 multinational businesses and the company boasts that it has provided services on every continent, excluding Antarctica. Global LT is led by its Chief Executive Officer Lisette Poletes (the daughter of Global LT’s late founder, Hortensia Albertini) and President Tom Hanson. The company was founded in 1979 and is based in the Detroit suburb of Troy, MI (www.global-lt.com).

This is the second time Abacus has supported Vincente Partners and Global LT.  The first was in July 2014, when Abacus was the sole lead arranger for $16.85 million in senior secured credit facilities that backed Vincente’s original investment in Global LT. “Once again, the Abacus Finance team proved to be a trusted partner on a transaction that required a tight turnaround,” said Jay Ferguson, Managing Partner at Vicente Capital Partners.

“We have a great relationship with the team at Abacus,” said Jason Beck, Principal at Vicente Capital Partners. “With their knowledge of the company and the industry, due diligence was efficient and quick, and Abacus was able to deliver certainty of close early in the process.” Abacus team members involved in the transaction included Tim Wong and Brian Green.

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).

“Vicente Capital Partners is a great fit for us given their lower-middle market focus and expertise in software, technology-enabled business services, healthcare, and specialty manufacturing,” said Abacus Senior Vice President Timothy Wong.

Vicente Capital Partners makes non-control and control investments in businesses that have annual revenues between $5 million and $50 million. Sectors of interest include business services (outsourced services, Internet services, and telecom services); consumer services (healthcare services, residential delivery, and education); and specialty manufacturing (aerospace & defense, environmental products, and networking/telecom equipment). The firm is based in Los Angeles (www.vicentecapital.com).

Legal counsel on this transaction was provided to Abacus by Goulston & Storrs (www.goulstonstorrs.com).

© 2016 Private Equity Professional • 7-14-16

Abacus Finance Group was the Administrative Agent and Lead Arranger for a senior secured credit facility to back the buy of Biochemical Diagnostics by Kova International, a portfolio company of One Rock Capital Partners, Laurel Crown Partners, and StoneCreek Capital.

Biochemical Diagnostics is a manufacturer of controls and disposable sample preparation products used in drugs of abuse testing. The company’s products are used in toxicology and clinical laboratories and also in handheld devices for point of care testing. Biochemical Diagnostics was founded in 1981 by Allen Panetz and is headquartered in Edgewood, NY (www.biochemicaldiagnostics.com).

Kova International is a developer, manufacturer and marketer of urinalysis supplies for the medical laboratory market.  Kova operates two product lines: (1) urinalysis control liquids which are used for automated and manual quality control testing; and (2) plastic disposables such as slides, tubes, petters (a transfer pipette with a bulb-like base) for use in manual microscopy urinalysis tests.

In February 2013, Abacus provided $16.5 million in senior secured debt to support the divisional spin out by One Rock of Kova International from Hycor Biomedical. “As was the case when Kova was acquired from Hycor Biomedical nearly three years ago, we chose to partner with Abacus because of their expertise in financing healthcare companies and ability to assure certainty of close early on,” said Kimberly Reed, a One Rock partner.

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).

“One Rock has been terrific to work with, and they are a great fit for us given their investment strategy and their sector focus,” said Tim Clifford, President and CEO of Abacus. “Their due diligence preparation was very thorough, and their team meshed smoothly with ours. As in other transactions, the critical success factors came down to our flexibility and our ability to provide certainty of close – both important aspects of what we call our Total Partnership Approach.” Other Abacus team members involved in the transaction included Tim Wong and Brian Green.

One Rock makes control investments of $10 million to $60 million in companies that are active in the chemicals and process industries; specialty manufacturing and healthcare products; business and environmental services; and automotive retail. One Rock has a strategic relationship with Mitsubishi Corporation – the firm’s largest investor – which provides strategic resources to One Rock and its portfolio companies.  One Rock was formed in 2010 by Tony Lee and Scott Spielvogel and is based in New York (www.onerockcapital.com).

“Because of their knowledge of Kova from the earlier transaction,” said One Rock Principal Joshua Goldman, “the Abacus due diligence process was efficient and quick, ensuring an on-time close of the transaction.”

The acquisition of Biochemical Diagnostics expands Kova’s product line into the drugs abuse testing area and provides the combined company with opportunities to cross-sell Biochemical Diagnostics’ products through Kova’s distribution network. Kova is headquartered in Garden Grove, CA (www.kovaintl.com).

© 2016 Private Equity Professional • 6-21-16

Maranon Capital was the provider of a unitranche facility to back last week’s acquisition of Wedgewood Pharmacy by New Harbor Capital.

Wedgewood prepares compounded medications for people and their pets when FDA–manufactured drugs cannot meet their needs. Compounded medications are prescriptions and medication orders that are written by physicians, veterinarians and other authorized prescribers, and prepared by specially trained pharmacists and pharmacy technicians.

Wedgewood’s most common human health compounded preparations include: urology, obstetrics/gynecology, addiction, dentistry, endocrinology and dermatology. The company’s veterinary experience includes over 7,500 preparations for companion animals like dogs, cats, birds, and horses and includes some less common animals such as amphibians, hippopotamus and reptiles.  Wedgewood Pharmacy is headquartered near Philadelphia in Swedesboro, NJ (www.wedgewoodpharmacy.com).

Maranon provides senior financing, mezzanine debt and equity co-investments for private equity-backed and non-sponsored middle market transactions. Since 2008, Maranon has invested $2.1 billion in more than 130 transactions. The firm is currently managing over $1 billion of committed capital and has offices in Chicago; Birmingham, MI (a Detroit suburb); and South Bend, IN (www.maranoncapital.com).

New Harbor invests from $10 million to $30 million in lower middle market companies that have EBITDAs from $3 million to $15 million. Sectors of interest include growth-oriented business services companies with emphasis on the healthcare and education industries. The firm was co-founded by Tom Formolo and Ed Lhee, long-time partners at CHS Capital.  New Harbor is based in Chicago (www.newharborcap.com).

© 2016 Private Equity Professional • 6-21-16

Babson Capital Management was the joint lead arranger and bookrunner on a senior secured credit facility to support ABRY Partners’ recent acquisition of Safety Holdings (DBA SambaSafety), a provider of cloud-based data services on unsafe driving behavior. SambaSafety was owned by Cerca Group and Ticonderoga Private Equity which acquired the company in November 2011.

SambaSafety is a provider of cloud-based data services targeted at unsafe driving behavior. Customers include employers, insurance companies, background screeners and fleet management companies. The information is used to identify and address unsafe driving behavior to allow insurance carriers to accurately price risk throughout the lifecycle of insurance policies. SambaSafety is led by its CEO Richard Crawford and is based in Albuquerque (www.SambaSafety.com).

“Babson has been a reliable partner to ABRY Partners on multiple transactions, and their involvement was invaluable in completing our investment in SambaSafety,” said Nathan Ott, principal for ABRY Partners. “In addition to its deep experience in providing middle-market financing solutions, Babson offers a partner-like approach focused on meeting the needs of sponsors and borrowers, and we look forward to working with the team again soon.”

Babson Capital has $231 billion in assets under management and is a member of the MassMutual Financial Group. The firm has offices in Boston and Springfield, MA; New York, Chicago, Charlotte and Los Angeles, and nine other offices in Europe, Asia and Australia (www.BabsonCapital.com).

“Babson deeply values our relationship with ABRY Partners and we appreciate the opportunity to partner with them on the acquisition of SambaSafety,” said Brian Baldwin, managing director in Babson’s North American Private Finance Group. “SambaSafety offers a compelling value proposition at a time when driving-related risks to employers are growing, and we are confident that SambaSafety’s experienced management team can leverage potential growth opportunities with the support of ABRY Partners’ expertise and resources.”

ABRY invests in the media, communications, and business and information sectors. The firm is currently managing $4.3 billion of total capital and investing out of a $1.9 billion private equity fund, a $950 million senior equity fund and a $1.5 billion senior debt fund. ABRY was founded in 1989 and is headquartered in Boston (www.abry.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-25-16

Ares Capital has agreed to acquire American Capital in a cash and stock transaction valued at $3.4 billion. On a combined pro forma basis the companies would have more than $13 billion of investments at fair value as of March 31, 2016. The boards of both companies have unanimously approved the transaction.

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. Founded in 1986, American Capital has eight offices in the US, Europe and Asia. The firm is headquartered in Bethesda (www.AmericanCapital.com).

In November of last year, ACAS hired Goldman Sachs and Credit Suisse to assist the company in undertaking a strategic review of all corporate finance alternatives. The review considered all alternatives for maximizing shareholder value, including a sale of the entire company or a sale of various business lines. In January the strategic review was completed and the board authorized the company to proceed with the solicitation of offers to purchase all of ACAS or any of its business lines.

ACAS shareholders will receive $1.5 billion in cash from Ares Capital (NASDAQ:ARCC) and 111 million Ares Capital shares currently valued at $1.7 billion. In addition, Ares Management (NYSE:ARES) will pay $275 million of cash to ACAS shareholders at closing. Following the transaction, Ares Capital shareholders will own approximately 74% of the combined company and ACAS shareholders will own the balance of 26%.

“Similar to the strategy we utilized in our acquisition of Allied Capital in 2010, we plan to leverage our origination platform to redeploy the ACAS portfolio into directly-originated investments generating a higher level of current income and ultimately improved risk-adjusted returns,” said Kipp deVeer, Chief Executive Officer of Ares Capital. Ares Capital is headquartered in New York with additional offices across the country (www.arescapitalcorp.com).

“The growing demand for capital from middle market borrowers has created the need for flexible capital providers like us to fill the financing gap as banks continue to retrench from the market,” said Michael Arougheti, Co-Chairman of Ares Capital’s Board of Directors. “We believe this transaction materially enhances our presence as a market leading direct lender with the size and scale to capitalize on the attractive competitive dynamics in the market today and for the foreseeable future.”

Prior to closing, ACAS is permitted to continue its plan to sell certain portfolio investments with the proceeds used to retire indebtedness or to remain in cash. Ares/ACAS will remain externally managed by Ares Capital Management and all current Ares Capital officers and directors will remain in their current roles.

Wells Fargo Securities (www.wellsfargo.com) and Bank of America Merrill Lynch (www.baml.ccom) served as financial advisors to Ares Capital. Goldman Sachs & Co. (www.gs.com) and Credit Suisse (www.credit-suisse.com) served as financial advisors to American Capital.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-24-16

NXT Capital has provided additional financing to support the add-on acquisition by Regent Holding Company of Illume, a designer, manufacturer, and marketer of branded and private label home fragrances. Regent has been a portfolio company of Freeman Spogli since October 2015. NXT provided the original senior secured credit facility to back Freeman Spogli’s acquisition of the company.

Illume’s products include scented candles, diffusers, room and linen sprays, and bath & body products such as lotions, perfume and washes. The company is based south of Minneapolis in Bloomington, MN (www.illumecandles.com).

Regent is a designer, marketer and supplier of home décor and accent products. Its products are sold through 12,000 independent and chain retailers in the US and over 3,500 customers in Europe. The company products – totaling more than 8,000 SKUs across more than 30 home décor product categories – are sold primarily under two trade brands, Creative Co-Op in the US and Bloomingville in Europe.  Products include jewelry, candle holders, clocks, coasters, decorative trays & bowls, frames, figurines & statues, and other home decor items. The company is led by its CEO Eugene Wang. Regent was founded in 2001 and is headquartered in Memphis (www.creativecoop.com).

“We are excited to work with NXT Capital again and appreciate their continued support of Regent,” said Brad Brutocao, a Partner at Freeman Spogli. “NXT provided a flexible financing solution to the company through this amendment while ensuring the certainty of debt financing to close this transaction.”

NXT Capital provides structured financing of up to $150 million with a hold size up to $50 million to middle-market companies through its corporate finance and real estate finance groups. The firm is based in Chicago with offices in Atlanta, Dallas, Los Angeles, Nashville, New York, Phoenix, San Francisco (www.nxtcapital.com).

Freeman Spogli invests in middle market consumer and distribution companies. Since its founding in 1983, the firm has invested over $3 billion in 53 portfolio companies with an aggregate transaction value of $20 billion.  Freeman Spogli has offices in Los Angeles and New York (www.freemanspogli.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-20-16

Antares Capital was the administrative agent, lead arranger and bookrunner on a senior secured credit facility to support the acquisition last month of Safety Holdings (DBA SambaSafety) by ABRY Partners. The selling shareholders of SambaSafety were Cerca Group and Ticonderoga Private Equity which had acquired the company in November 2011.

SambaSafety is a provider of cloud-based data services targeted at unsafe driving behavior. Customers include employers, insurance companies, background screeners and fleet management companies. The information is used to identify and address unsafe driving behavior to allow insurance carriers to accurately price risk throughout the lifecycle of insurance policies. SambaSafety is led by its CEO Richard Crawford and is based in Albuquerque (www.SambaSafety.com).

Antares Capital is a provider of debt and equity financing for middle-market, private equity-backed transactions. The firm has provided more than $120 billion in financing over the past five years and has offices in Atlanta, Chicago, Los Angeles, New York, Norwalk (Connecticut) and Toronto (www.antares.com). Antares was sold by GE Capital in August 2015 to the Canada Pension Plan Investment Board.

“Antares’ flexibility and strong presence in the technology space made them a great partner on this transaction,” said Nathan Ott, principle for ABRY Partners.

ABRY invests in the media, communications, and business and information sectors. The firm is currently managing $4.3 billion of total capital and investing out of a $1.9 billion private equity fund, a $950 million senior equity fund and a $1.5 billion senior debt fund. ABRY was founded in 1989 and is headquartered in Boston (www.abry.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-3-16

Monroe Capital was the sole lead arranger and administrative agent on a senior term loan to support the acquisition of Twin-Star International by Z Capital Partners.

Twin-Star designs and manufactures decorative electric fireplaces, heaters, home furnishings (television stands, speaker bars, cabinets, beds, and kitchen islands) and consumer electronics (headphones, power surge protectors and HDMI cables). Company owned brands include ClassicFlame, Duraflame, ChimneyFree, ClassicFlame Pro, Bell’O, Bell’O Digital, PowerHeat, and Safer Socket. Twin-Star was founded in 1996 and is headquartered north of Boca Raton in Delray Beach, FL with manufacturing facilities in Southern China (www.twinstarhome.com).

Twinstar’s co-presidents, Peter Harper and Marc Sculler, and EVP Andy Bandremer will continue to oversee daily operations of the company under Z Capital ownership.

Monroe Capital provides senior and junior debt and equity co-investments to middle-market companies based in the US and Canada. 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).

Z Capital intends to grow Twin-Star by expanding the company’s retail platform into additional channels – homebuilding, hotels and lodging, and commercial markets – and new geographies. Z Capital makes control investments in middle-market distressed companies, operational turnarounds and special situations. The firm targets companies with an enterprise value of less than $1 billion or EBITDA of less than $100 million. Z Capital is based in the Chicago suburb of Lake Forest and has additional offices in New York and Zurich (www.zcap.net).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-28-16