The Senior Secured Loan Program, jointly managed by Ares Capital Corporation and an affiliate of GE Capital, announced today the closing of a $290 million senior secured loan to support Avista Capital Partners’ and Ontario Teachers’ Pension Plan Board’s acquisition of INC Research, Inc., a Raleigh, NC-based full-service global contract research organization focused on late-stage (Phase II-IV) pharmaceutical clinical trials.
Jefferies Finance, GE Capital and Ares Capital served as joint lead arrangers and bookrunners for the credit facility. This represents the eighth transaction completed by the Senior Secured Loan Program in 2010 and the sixth transaction closed during the third quarter. In addition, GE Capital, through its GE Capital, Healthcare Financial Services business, provided a $40 million revolving credit facility in support of the transaction.
This $290 million facility demonstrates the continued commitment to the Senior Secured Loan Program by GE Capital and Ares Capital Corporation. The Senior Secured Loan Program provided INC Research’s sponsors, Avista Capital and Ontario Teachers, with a fully underwritten stretch senior solution.
“The unique characteristics of the Senior Secured Loan Program product and the ability of GE Capital and Ares Capital to provide a fully committed and underwritten facility within 45 days made the selection of our financing source an easy choice,” said David Burgstahler, Partner and President of Avista Capital Partners. “Their expertise, resources and execution capabilities are especially important in today’s M&A environment.”
“We are pleased to support the acquisition of INC Research, Inc.,” said Robert McCarrick, Senior Managing Director, Corporate Finance, for GE Capital, Healthcare Financial Services. “We kept our focus on our clients’ key objectives of eliminating syndication risk and closing within a quick timeframe.”
“We are excited to partner with INC Research, Inc. and delighted to have brought a creative and flexible financing solution to two of our key sponsor clients,” said Michael Arougheti, President of Ares Capital Corporation.
About the Senior Secured Loan Program, LLC
The Senior Secured Loan Program was formed in December 2007 with approximately $3.6 billion of committed capital to invest in the senior secured debt of middle-market companies. The program is co-managed by GE Commercial Finance Investment Advisory Services LLC and Ares Capital Corporation. GE Capital and Ares Capital are able to make new commitments of up to $270 million in a single transaction for borrowers across a wide range of industry sectors. The Senior Secured Loan Program structure benefits borrowers by virtue of its simplified documentation through a single credit agreement, greater certainty of execution, and reduced decision-making complexity throughout the life of the loan.
About Ares Capital Corporation
Ares Capital (arescapitalcorp.com) is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. With offices in Atlanta, Chicago, Los Angeles, New York and Washington, D.C., Ares Capital is a specialty finance company that provides integrated debt and equity financing solutions to U.S. middle market companies. Ares Capital invests primarily in first- and second-lien loans and mezzanine debt, which in some cases includes an equity component. To a lesser extent, Ares Capital also makes equity investments. Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management LLC, a global alternative asset manager and a Securities and Exchange Commission registered investment adviser. As of June 30, 2010, Ares Management had approximately $37 billion of committed capital under management.
About GE Capital, Healthcare Financial Services
With over $17 billion invested in more than 30 sub-sectors including senior housing, hospitals, pharmaceuticals and medical devices, GE Capital, Healthcare Financial Services is a premier provider of capital and services to the healthcare industry. Our team of professionals provides deep industry expertise to create business and financial solutions tailored to meet the individual needs of our customers. For more information, visit gecapital.com/healthcare.
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit gecapital.com or follow company news via Twitter (@GECapital).
GE (ge.com) is a diversified infrastructure, finance and media company that is taking on the world’s toughest challenges.
About INC Research, Inc.
INC Research (incresearch.com) is a therapeutically focused contract research organization (CRO) with a high performance reputation for conducting global clinical development programs of the highest integrity. Pharmaceutical and biotechnology companies look to INC Research for a complete range of customized Phase I through Phase IV programs in therapeutic areas of specialty, and in innovative pediatric and woman’s health trials. The company’s The Trusted Process® methodology and therapeutic foresight leads customers to more confident, better-informed drug and device development decisions. INC Research is headquartered in Raleigh, North Carolina.
About Avista Capital Partners
Avista Capital Partners (avistacap.com) is a leading private equity firm with offices in New York, Houston and London. Founded in 2005, Avista’s strategy is to make controlling or influential minority investments in growth-oriented healthcare and energy companies as well as select media, industrial and consumer businesses. Through its team of seasoned investment professionals and industry experts, Avista seeks to partner with exceptional management teams to invest in and add value to well-positioned businesses.
About Teachers’ Private Capital
Teachers’ Private Capital (otpp.com) is one of the world’s largest private equity investors. It is the private investment department of the Ontario Teachers’ Pension Plan. With $96.4 billion in assets as of December 31, 2009, the Ontario Teachers’ Pension Plan is the largest single-profession pension plan in Canada. It is an independent corporation responsible for investing the fund and administering the pensions of Ontario’s 289,000 active and retired teachers.