The Senior Secured Loan Program (SSLP), jointly managed by an affiliate of Ares Capital Corporation and an affiliate of GE Capital, announced today that it closed seven financing commitments totaling $751 million, including refinancing transactions, during the first quarter of 2012. Since January 1, 2010, the SSLP has committed approximately $6.7 billion to middle market borrowers.
“The SSLP continues to be an attractive option for private equity sponsors seeking larger and more flexible capital solutions without the need for a broad syndication,” said Michael Arougheti, President of Ares Capital.
“In the first quarter of 2012 the SSLP provided seven middle market companies with efficient and timely financial capital to help them grow their businesses,” said Stuart Aronson, President and CEO of GE Capital’s Sponsor Finance business. “The middle market’s growth and stability are fundamental to the U.S. economy and we look forward to continuing to serve these companies through the SSLP.”
Below is a brief description of three recent transactions.
Nivel Parts & Manufacturing Company, LLC / Kelso & Company
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $150 million senior secured credit facility provided by the SSLP to support the acquisition of Nivel Parts & Manufacturing Company, LLC by Kelso & Company. Nivel is a leading provider of golf car aftermarket parts and accessories. In addition, GE Capital, through its GE Antares Capital subsidiary, provided a $20 million senior secured revolving credit facility in support of the transaction.
Pregis Corporation / AEA Investors LP
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $142.5 million senior secured term loan led by the SSLP to support the refinancing of Pregis Corporation by AEA Investors LP. Pregis Corporation is a leading international manufacturer, marketer and supplier of protective packaging solutions. In addition, GE Capital, through its GE Antares Capital subsidiary, provided a $35 million senior secured revolving credit facility in support of the transaction.
Innovative Interfaces Inc. / Huntsman Gay Global Capital LLC and JMI Equity
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a senior secured term loan provided by the SSLP to support the acquisition of Innovative Interfaces Inc. by Huntsman Gay Global Capital, LLC and JMI Equity. Innovative Interfaces Inc. is a provider of technology and services to over 4,500 public, private and academic libraries. In addition, GE Capital, through its GE Antares Capital subsidiary, 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. 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 $7.7 billion of available capital and can hold up to $300 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 is a leading specialty finance company that provides one-stop financing solutions to U.S. middle market companies and private equity sponsors. The Company 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. Ares Management is a global alternative asset manager and a SEC-registered investment adviser with approximately $46 billion of committed capital under management as of December 31, 2011. For more information, visit www.arescapitalcorp.com.
About GE Capital
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit www.gecapital.com or follow company news via Twitter (@GECapital). GE (NYSE: GE) 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. For more information, visit ge.com.
About GE Antares Capital
GE Antares is a unit of GE Capital, Sponsor Finance. We are builders, not bankers. With offices in Atlanta, Chicago, Los Angeles, New York, and San Francisco, GE Antares is a leading middle market lender, offering a “one-stop” source for GE’s lending and other services offered 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. For more information, visit the GE Antares website at geantares.com.
About Nivel Parts & Manufacturing Company, LLC
Headquartered in Jacksonville, Florida, Nivel is one of North America’s largest providers of golf car aftermarket parts and accessories. Nivel's broad product offering of over 8,000 items is unequaled in the industry, with 95% of orders shipped for same day delivery. For more information, visit www.nivelparts.com.
About Kelso & Company
Kelso & Company is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has made investments in over 110 companies with aggregate initial capitalization at close of over $39 billion. The firm is currently investing its eighth investment partnership, Kelso Investment Associates VIII, L.P., with $5.1 billion of committed capital. For more information, visit www.kelso.com.
About Pregis Corporation
Pregis Corporation is a leading global provider of innovative protective packaging materials and systems. The company offers solutions for a wide variety of consumer and industrial market segments including food, beverage, healthcare, medical devices, agricultural, e-commerce, retail, automotive, furniture, electronics, construction and military/aerospace. Pregis currently operates 25 facilities in 10 countries in North America and Europe. For more information, visit www.pregis.com.
About AEA Investors LP
AEA is a pioneer in the private equity industry, having been founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co. With over 40 years of investing experience, AEA has established a track record of achieving superior returns as a leading private equity partner to middle market companies. AEA focuses on control buyouts in four industry sectors: value-added industrial products, specialty chemicals, consumer products and services. For more information, visit www.aeainvestors.com.
About Innovative Interfaces Inc.
Innovative Interfaces creates cutting-edge products that allow libraries to succeed in a modern technology environment and the freedom to implement solutions that best meet their specific needs. The company’s versatile and market-leading solutions include: the Sierra Services Platform, the Millennium ILS, the Encore Synergy discovery application, Electronic Resource Management, and INN-Reach resource sharing. An established company with a vision for the future, Innovative connects with thousands of libraries of all types in over 50 countries. Innovative’s commitment to service is reflected by its 24/7/365 Help Desk, Innovative University, and the CSDirect Web support center. The company is located in Emeryville, California with offices around the world. For more information, visit www.iii.com.
About Huntsman Gay Global Capital, LLC
Huntsman Gay Global Capital is a private equity firm that brings unrivaled experience to the middle market - offering all the advantages of both a strategic and a financial buyer in one firm. Co-founded by Jon M. Huntsman, one of the world's leading industrialists, and Robert C. Gay, a former managing director of Bain Capital, the firm focuses on middle market leveraged buyouts and growth equity investments. For more information, visit www.hgequity.com.
About JMI Equity
JMI Equity is a growth equity firm focused on investing in leading software, internet, business services and healthcare IT companies. Founded in 1992, JMI Equity has invested in more than 100 businesses in its target markets and has over $2.1 billion of committed capital under management. JMI Equity provides capital for growth, recapitalizations, acquisitions and buyouts. Representative investments include Blackbaud, DoubleClick, Eloqua, Navicure, Nimsoft and ServiceNow. For more information, visit www.jmiequity.com.