American Capital Closes Over $2.4 Billion in New and Extended
Credit Facilities for 19 Portfolio Companies in 2012
BETHESDA, Md., Jan. 14, 2013 /PRNewswire/ -- American
Capital, Ltd. (Nasdaq: ACAS) ("American Capital") announced today
that in 2012 the American Capital Syndications Group was successful
in closing over $2.4 billion in new
and extended credit facilities for 19 of its portfolio
companies. The financings helped to facilitate a variety of
transactions including four dividend recaps, three add-on
acquisitions for existing portfolio companies, eleven refinancings
and maturity extensions and one new One Stop
Buyout®. Throughout the year American Capital and
its affiliates received approximately $890
million in debt and equity proceeds as a result of these
transactions. These credit facilities were ultimately
syndicated to approximately 80 separate lending institutions,
including longstanding lending relationships of American
Capital.
"Our ability to call upon a wide variety of lending institutions
in order to match the specific needs of our portfolio companies
with the investment profile of an appropriate group of lenders is a
skill set we've developed over many years," said Jeff Schumacher, American Capital Managing
Director and Group Head of Syndications. "These long-term
lending relationships, in addition to the overall strength of the
capital markets in 2012, allowed us to return a significant portion
of capital to American Capital, while also putting in place
debt-capital structures at 19 of our portfolio companies that
resulted in meaningful increases in both financial and operational
flexibility. Our Syndications Group has worked with a wide
range of distinguished financial institutions and debt capital
market investors, and we will continue to utilize this broad group
of investor relationships to help facilitate transactions going
forward."
A summary of select 2012 representative transactions is outlined
below.
Paradigm Precision Holdings, LLC
On August 31, 2012, American
Capital completed the syndication of $75
million in senior credit facilities consisting of a
revolving credit facility, first-lien term loan, and second-lien
term loan for portfolio company Paradigm Precision Holdings, LLC
("Paradigm"), a leading and premier global supplier of precision
aerospace components for jet engine manufacturers. These
facilities provide Paradigm with a stable source of financing to
support the company's ongoing working capital needs and growth
initiatives. American Capital received $32
million in debt proceeds from the transaction.
During the first half of 2007, American Capital and an affiliate
invested $108 million in Paradigm for
the One Stop Buyouts® of Smith West Inc. ("Smith West"),
Palmer Manufacturing Co. Inc. ("Palmer") and Eurocast S.A.
("Eurocast"), leading manufacturers of precision machined aerospace
engine components. American Capital's investment took the
form of a senior credit facility, senior secured subordinated notes
and common equity. In addition, in September 2008, American Capital invested in
Paradigm to support the acquisition of TM Industries, Inc., a
high-precision machining company that specializes in machining
large size, highly technical parts for customers in the aerospace,
power generation, oil and gas and defense markets.
Based in Peabody, Massachusetts
with additional facilities in Malden,
Massachusetts; East Berlin,
Connecticut; Tempe,
Arizona; Guaymas, Mexico,
and; Tunis, Tunisia; Paradigm is a
manufacturer of highly complex, close tolerance parts and
assemblies used mainly in aircraft engine and industrial gas
turbines. In addition to working with all of the major
turbine engine original equipment manufacturers, the company also
supplies parts used in land-based power generation and other
specialty applications.
For more information on American Capital's investment in
Paradigm, please go to
www.americancapital.com/Pages/our_portfolio/companies/paradigm_precision_holdings.aspx
WIS Holdings Company, Inc.
On December 20, 2012, American
Capital completed the syndication of $365
million in senior credit facilities consisting of a
revolving credit facility, first-lien term loan, and second-lien
term loan for its portfolio company WIS Holdings Company, Inc.
("WIS"), a leading global provider of outsourced inventory
management services. This transaction replaced the company's
existing indebtedness with a new, long-term and highly
accommodating source of financing. American Capital and its
affiliates received $250 million of
debt and equity proceeds from the transaction.
In January 2007, American Capital
and an affiliate invested $411
million in the One Stop Buyout® of WIS.
American Capital's investment took the form of a revolving credit
facility, senior term loan, senior subordinated debt, holding
company PIK notes and common and convertible preferred
equity. WIS management also invested in equity.
Headquartered in San Diego,
California the company's core business is to provide the
systems, technology and staff for third-party inventory
verification services. WIS has U.S. headquarters in
San Diego and Canadian
headquarters in Toronto,
Ontario. The company has over 225 offices across the U.S.,
Canada and internationally with
operations based in the U.K., China, Japan
and Mexico. WIS services large blue-chip global
retailers.
For more information on American Capital's investment in WIS,
please go to
www.americancapital.com/Pages/our_portfolio/companies/wis_international.aspx
Affordable Care Holding Corp.
On December 26, 2012, American
Capital completed the syndication of $300
million in senior credit facilities consisting of a
revolving credit facility, first-lien term loan, and second-lien
term loan for its portfolio company Affordable Care Holding Corp.
("Affordable Care"), a dental services organization that supports a
network of affiliated dental practices providing removable
prosthetics and related services. As part of this financing,
Affordable Care was able to extend maturity dates on its credit
facilities while negotiating a favorable covenant package, which
will allow the company significant flexibility to pursue additional
growth opportunities. American Capital and its affiliates
received $126 million of debt and
equity proceeds from the transaction.
Founded in 1975 and based in Raleigh and Kinston,
North Carolina, the Affordable Care network is America's
largest provider of dentures. The company currently provides dental
practice management and on-site dental laboratory services
supporting a network of 187 affiliated dental practices operating
under the brand of Affordable Dentures. Affiliated practices
currently operate in 38 states. The Affordable
Care-affiliated practices provide value priced dentures and
same-day service with no appointment necessary.
American Capital first invested in Affordable Care in
2006. For more information on American Capital's investment
in Affordable Care, please go to
www.americancapital.com/Pages/our_portfolio/companies/affordable_care.aspx
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and
global asset manager. American Capital, both directly and
through its asset management business, originates, underwrites and
manages investments in middle market private equity, leveraged
finance, real estate and structured products. American
Capital manages $18.6 billion of
assets, including assets on its balance sheet and fee earning
assets under management by affiliated managers, with $118 billion of total assets under management
(including levered assets). From its eight offices in the
U.S. and Europe, American Capital
and its affiliate, European Capital, will consider investment
opportunities from $10 million to $500
million. For further information, please refer to
www.AmericanCapital.com.
This press release contains forward-looking statements. The
statements regarding expected results of American Capital are
subject to various factors and uncertainties, including the
uncertainties associated with the timing of transaction closings,
changes in interest rates, availability of transactions, changes in
regional, national or international economic conditions, or changes
in the conditions of the industries in which American Capital has
made investments.
Two Bethesda Metro Center
14th Floor
Bethesda MD 20814
(301) 951-6122
(301) 654-6714 Fax
Info@AmericanCapital.com
www.AmericanCapital.com
Contact:
Jeff
Schumacher, Managing Director and Group Head of
Syndications
SOURCE American Capital, Ltd.