BDCA Makes Direct Originated Investment in Icynene, a Maker and Distributor of Spray Polyurethane Foam Insulation
Investment Provides Senior Secured Financing for the Acquisition of a Well-Known Buildings Product Company
NEW YORK, Nov. 21, 2014 /PRNewswire/ -- Business Development Corporation of America ("BDCA"), a business development company primarily focused on senior debt investments in middle market private companies, closed on a direct originated transaction for Icynene U.S. Acquisition Corp. ("Icynene Acquisition") as borrower, to be used as acquisition financing for a transaction involving Icynene Acquisition and certain of its affiliates (collectively, "Icynene"). Icynene is a leading maker and distributor of spray polyurethane foam insulation products. Icynene's insulation products are installed in walls, ceilings, floors, attics and hard-to-insulate areas across a diverse set of construction end markets. Icynene was purchased by Friedman Fleischer & Lowe, LLC (the "Sponsor").
The financing provided by BDCA consisted of a $69 million senior secured credit facility, with a six-year term and two-year call protection. Proceeds from the financing, in conjunction with an equity investment from the Sponsor, were used to acquire Icynene from the selling shareholders.
"Our investment in Icynene provided BDCA the opportunity to partner with a well-respected private equity firm," said Peter M. Budko, Chief Executive Officer of BDCA. "The combination of our origination efforts, credit underwriting and growing platform provided us this attractive, middle market investment opportunity. We look forward to continuing to work with both the Sponsor and Icynene on future financing endeavors."
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SOURCE Business Development Corporation of America
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