The Senior Secured Loan Program (SSLP), jointly managed by an affiliate of Ares Capital Corporation and an affiliate of GE Capital, announced today that its total available capital has increased from $9 billion to $11 billion. In connection with this expansion, GE Capital and an affiliate agreed to make available to the SSLP up to approximately $8.7 billion and Ares Capital agreed to make available to the SSLP up to approximately $2.3 billion.
During the third quarter of 2013, the SSLP closed eight financing transactions, including refinancings of existing portfolio companies, totaling $1.4 billion. Since January 1, 2010, the SSLP has committed approximately $11.9 billion to middle market borrowers, including $2.8 billion year to date through September 30, 2013.
Below is a brief description of select third quarter SSLP transactions.
Nordco, Inc. / Greenbriar Equity Group LLC
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $230 million senior secured term loan provided by SSLP to support Greenbriar’s acquisition of Nordco, Inc., an existing portfolio company of the SSLP. Nordco provides an extensive selection of products and services that make it possible for rail-related industries to build, improve, maintain and inspect their track infrastructure and move rolling stock. Through its GE Antares Capital business, GE Capital also provided a $20 million senior secured revolving credit facility in support of the transaction.
Excelligence Learning Corporation / Sterling Investment Partners
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $174 million senior secured term loan provided by the SSLP to support the recapitalization of Excelligence Learning Corporation by Sterling Investment Partners. Excelligence is a leading developer, manufacturer, distributor and retailer of education products which are sold to child care programs, preschools, elementary schools and families. Through its GE Antares Capital subsidiary, GE Capital also provided a $30 million senior secured revolving facility in support of the transaction.
Universal Services of America / Partners Group
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a (i) senior secured term loan and a (ii) senior secured delayed draw term loan provided by SSLP to support the investment in Universal Services of America by Partners Group. Universal Services is a growing security company in the U.S. with over 80 offices nationwide. Through its GE Antares Capital subsidiary, GE Capital also provided a senior secured revolving credit facility in support of the transaction.
About Senior Secured Loan Program
The Senior Secured Loan Program was formed in December 2007 to invest in the senior secured debt of middle-market companies. Its members are comprised of Ares Capital Corporation and GE Global Sponsor Finance LLC. The program is co-managed by GE Commercial Finance Investment Advisory Services LLC and Ares Capital Management LLC and transactions require approval by the individuals appointed by the members of the SSLP. The SSLP has $11 billion of available capital and can hold up to $350 million in a single transaction for borrowers across a wide range of industry sectors. The SSLP benefits borrowers by virtue of greater speed, simplicity and certainty, with proven partners.
About Ares Capital Corporation
Ares Capital (arescapitalcorp.com) is a leading specialty finance company that provides one-stop financing solutions to U.S. middle-market companies and private equity sponsors. Ares Capital originates and invests in senior secured loans, mezzanine debt and, to a lesser extent, equity investments through its national direct origination platform. Ares Capital’s investment objective is to generate both current income and capital appreciation through debt and equity investments primarily in private companies. Ares Capital has elected to be regulated as a business development company, and is externally managed by a wholly owned subsidiary of Ares Management LLC, a global alternative asset manager and a SEC-registered investment adviser with approximately $68 billion of committed capital under management as of September 30, 2013.
About GE Capital
GE Capital (gecapital.com) offers consumers and businesses around the globe an array of financial products and services. GE (ge.com) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance.
About GE Antares Capital
GE Antares Capital (geantares.com) is a unit of GE Capital, Sponsor Finance. With offices in Atlanta, Chicago, Los Angeles, New York and San Francisco, GE Antares is a leading lender to middle market private equity sponsors. GE Capital Markets has ranked #1 in the U.S. Sponsored Middle Market Bookrunner League Tables for three of the past four years.
About Nordco, Inc.
The Nordco family of companies (nordco.com) provides an extensive selection of products and services that make it possible for rail-related industries to build, improve, maintain and inspect their track infrastructure and move rolling stock. Nordco, headquartered in Oak Creek, Wisconsin, has a long history as a manufacturer of new and rebuilt railroad Maintenance-of-Way Machinery. Today the company’s product line includes in-house and on-site machinery inspection and repair; reconditioned machinery rental; mobile railcar movers; ultrasonic rail flaw testing equipment and services for railroads and other industries; and replacement parts. Nordco operates manufacturing facilities in Oak Creek, Wisconsin; Ridgefield, Connecticut; Grandview, Missouri; and Arcola, Illinois.
About Greenbriar Equity Group, LLC
Greenbriar Equity Group LLC (greenbriarequity.com), a private equity firm with over $2.0 billion of committed capital, focuses exclusively on the global transportation industry, including companies in the aerospace and defense, logistics and distribution, freight and passenger transport, automotive, and related sectors. Greenbriar invests with proven management teams who are interested in being significant equity owners in their companies as well as with corporate partners who are interested in raising capital. Greenbriar’s partners bring many decades of experience at the highest levels within the transportation industry.
About Excelligence® Learning Corporation
Excelligence® Learning Corporation (excelligencelearning.com) is a leading developer, manufacturer, distributor and retailer of education products which are sold to child care programs, preschools, elementary schools and families. Excelligence offers a broad array of products designed for both classroom and home use, enhanced by its extensive proprietary product development program. IN addition to its own Colorations® brand of innovative arts & crafts products, Excelligence also offers popular name brands such as Crayola®, Elmer’s®, Fiskars®, and Lego®. The Excelligence multi-channel marketing model includes catalogs, Websites, and a field sales force. Its distribution capacity, which includes six strategically located warehouses nationwide, enables fast, cost-effective delivery and also custom assembly of prepackaged school supplies, both strong competitive advantages. Excelligence’s mission is to support and enrich children’s education at school and at home by providing safe, top-quality products and learning resources, excellent values and exceptional service.
About Sterling Investment Partners
Founded in 1991, Sterling Investment Partners (sterlinglp.com) has been investing in and building middle-market companies for over 21 years with a highly experienced, cohesive team of senior investment professionals. Sterling acquires businesses that the firm believes have strong, sustainable competitive advantages and significant opportunities for value creation. Sterling has a long history of working in partnership with management teams. Sterling has in excess of $1.5 billion of equity capital under management, which includes significant investment from Sterling professionals. Over its history, Sterling has completed platform investments, strategic or add-on acquisitions, recapitalizations and liquidity events with an aggregate transaction value in excess of $10.0 billion, representing more than 80 transactions. Key industries Sterling focuses on include business services, consumer and retail, industrial value-added distribution, niche manufacturing, and transportation and logistics.
About Universal Services of America
Founded in 1965, Universal Services of America (universalpro.com) combines an innovative mix of tradition with cutting edge systems and technology to keep pace with the ever-evolving needs of today’s business environment. Headquartered in Santa Ana, California, with offices located nationwide, Universal employs hands-on, highly experienced management teams and continuous training to deliver consistent, high quality security solutions. Universal is made up of four unique divisions: Universal Protection Service, which offers a wide range of security professionals for commercial properties of every type; Universal Building Maintenance, which specializes in green cleaning services for every kind of facility; Universal Security Systems, which provides full-service security systems; and Universal Fire/Life Safety Services, which offers all aspects of emergency preparation.
About Partners Group
Partners Group (partnersgroup.com) is a global private markets investment management firm with over EUR 30 billion in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Munich, Dubai, Singapore, Beijing, Seoul, Tokyo and Sydney. The firm employs over 650 people, is listed on the SIX Swiss Exchange (symbol: PGHN) with a market capitalization of over CHF 6.5 billion and a major ownership by its partners and employees.
Carl Drake - Ares Capital Corporation
P: 404-814-5204 - E: cdrake[.]aresmgmt.com.
Jennifer Sampson - GE Antares Capital
P: 312-441-7055 - E: jennifer.sampson1[.]ge.com.