American Capital's Sponsor Finance Group Invests Over $325 Million in 18 Companies in 2013
BETHESDA, Md., Feb. 12, 2014 /PRNewswire/ -- American Capital, Ltd. (Nasdaq: ACAS) ("American Capital" or the "Company") announced today that in 2013 it, along with its affiliate European Capital Limited ("European Capital"), invested over $325 million in 18 new and existing portfolio companies. These investments were led by American Capital's offices in the United States and Europe and were made in support of leading private equity firms' company buyouts, refinancings, add-on acquisitions, dividend recapitalizations and growth opportunities.
"In 2013, our Sponsor Finance Group utilized our efficient transaction execution abilities, competitive pricing and terms and flexible, wide-ranging financing capabilities to invest in attractive middle market companies, both directly with private equity sponsors and by participating in syndicated first and second lien term loans," said Adam Spence, Managing Director, American Capital. "We are proud to have been the lender of choice for these acquisitions, capital structure refinancings, dividend recapitalizations and corporate growth initiatives and look forward to using these relationships to help facilitate transactions in the future."
"Our Sponsor Finance Group, comprised of experienced investment professionals in the United States and Europe, is a dedicated, standalone group exclusively focused on providing capital, including senior, mezzanine, second lien, unitranche and equity, to the financial sponsor community," said Bowen Diehl, Managing Director, American Capital. "As we review investment opportunities in the pipeline for 2014, we are prepared to aggressively put our capital to work in new companies and deepen existing relationships, as well as create new partnerships within the community."
"In 2013, 30 deals with enterprise values higher than €50 million were closed with unitranche financing in Europe, confirming that the private debt arranged by non-banking lenders has been growing strongly in Europe over the last twelve months just like it has in the US for over 20 years," said Tristan Parisot, Managing Director, European Capital Financial Services Limited. "American Capital and European Capital's ability to support global businesses in their development both in North America and Europe is a unique value proposition highly recognized by the sponsors and management teams with which we work."
A summary of selected transactions is outlined below.
In December, European Capital invested €37.5 million in unitranche bonds and co-arranged the unitranche bonds financing to support a private equity firm in its purchase of INSEEC Group, a French private education group focused on business oriented academic programs.
CAMP Systems International, Inc.
In December, American Capital invested $15 million in a second lien facility to support a private equity firm in the dividend recapitalization of CAMP Systems International, Inc., a provider of subscription-based maintenance tracking information services to the corporate aviation market.
Survey Sampling International
In November, American Capital invested $53.8 million in a second lien facility to support a private equity firm in its refinancing of Survey Sampling International, a provider of surveying services.
Renaissance Learning, Inc.
In October, American Capital invested $15 million in a second lien facility to support a private equity firm in the dividend recapitalization of Renaissance Learning, Inc., a provider of technology-based school improvement and student assessment programs for K-12 schools.
Consolidated Precision Products
In October, American Capital invested $40 million in a second lien facility to support a private equity firm in the dividend recapitalization of Consolidated Precision Products, a global aerospace castings manufacturer for the commercial aerospace, military and industrial markets.
Systems Maintenance Services
In October, American Capital invested $28 million in a second lien facility to support a private equity firm in the dividend recapitalization of Systems Maintenance Services, a provider of maintenance services for IT hardware infrastructure assets.
Mitchell International, Inc.
In October, American Capital invested $7 million in a second lien facility to support a private equity firm in the acquisition of Mitchell International, Inc., a provider of technology solutions for the property and casualty claims industry.
Digital Insight Corporation
In October, American Capital invested $5 million in a second lien facility to support a private equity firm in its purchase of Digital Insight Corporation, provider of digital banking solutions to regional and community banks.
The Flexitallic Group
In July, European Capital invested €27.8 million in unitranche bonds to support a private equity firm in its purchase of The Flexitallic Group, an international market leader in the manufacturing and distribution of high-end sealing solutions.
In May, European Capital invested €4 million in mezzanine bonds to support a private equity firm in its purchase of Precisium Group, a major trading group for the distribution of automotive spare parts in France.
Cooper Gay Swett & Crawford, Inc.
In April, American Capital invested $2 million in a second lien facility to support a private equity firm in its purchase of Cooper Gay Swett & Crawford, Inc., a global independent wholesale, reinsurance and specialty insurance broker.
In March, American Capital invested $12.5 million in a second lien facility to support a leading private equity firm's purchase of Datapipe, Inc., a global provider of outsourced IT solutions to medium and large size enterprise customers.
Total Safety, Inc.
In March, American Capital invested $17 million in a second lien facility to support a leading private equity firm in the refinancing of Total Safety, Inc., a global outsourced provider of integrated safety and compliance solutions for clients operating in highly-regulated, hazardous environments.
In March, American Capital invested $30 million in a first lien facility as part of the refinancing of Neways, Inc., a multi-level marketing firm.
American Capital and its affiliated funds have invested approximately $31 billion in over 550 portfolio companies both directly and in support of leading financial partners in change of control transactions. For more information about American Capital's portfolio, go to http://www.americancapital.com/our-portfolio.
ABOUT AMERICAN CAPITAL
American Capital, Ltd. (Nasdaq: ACAS) 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, energy & infrastructure and structured products. American Capital manages $19 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $93 billion of total assets under management (including levered assets). Through an affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC) with approximately $9 billion of net book value, American Capital Mortgage Investment Corp. (Nasdaq: MTGE) with approximately $1 billion of net book value and American Capital Senior Floating, Ltd. (Nasdaq: ACSF). 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 $750 million. For further information, please refer to www.AmericanCapital.com.
ABOUT EUROPEAN CAPITAL
European Capital is an investment company for pan-European equity, mezzanine and senior debt investments with €0.9 billion in assets under management. European Capital is a wholly-owned affiliate of American Capital. It is managed by European Capital Asset Management Limited (the "Investment Manager"), a wholly-owned affiliate of American Capital. The Investment Manager has offices in London and Paris with 55 employees. Since its inception, European Capital Limited has invested €3.6 billion in over 100 companies in Europe. European Capital and its affiliates will consider senior, mezzanine and unitranche debt investment opportunities from 10 million to 100 million in either euros or sterling and up to 400 million for One Stop Buyouts®. For further information, please refer to www.EuropeanCapital.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.
Adam Spence, Managing Director, American Capital (212) 213-2009
Bowen Diehl, Managing Director, American Capital (214) 273-6630
Tristan Parisot, Managing Director, European Capital Financial Services Limited
+33 (0) 1 40 68 06 66
SOURCE American Capital, Ltd.