Levine Leichtman Capital Partners Portfolio Company Santa Cruz Nutritionals Raises $115M Senior Secured Bonds

LOS ANGELES, May 11, 2011 /PRNewswire/ -- Harmony Foods Corporation, doing business as Santa Cruz Nutritionals ("SCN"), a portfolio company of Levine Leichtman Capital Partners IV, L.P. ("LLCP"), announced today the successful completion of a $115M private bond offering to the institutional market.  SCN will use the proceeds of the 5 year, 10% Senior Secured Notes (the "Notes") to refinance existing debt, pay a shareholder dividend and pay related fees and expenses.  

Lauren Leichtman, Co-Founder and CEO of LLCP, commented, "This is an exciting transaction for SCN and a tribute to the hard work and dedication of our management team.  In the seven months since our acquisition of SCN, we have seen cash flow grow by 50% and have identified additional initiatives to enhance future performance.  The financial flexibility offered by the Notes will support SCN's efforts to capitalize on these opportunities and continue to build value for all of our stakeholders."

SCN, based in Santa Cruz, CA, is a leading manufacturer of gummy-based nutritional products and dietary supplements for consumers of all ages.  The Company has developed proprietary formulations and a unique manufacturing process that deliver active ingredients through great tasting, high quality chewable products.  SCN has established itself as a dominant player in its core markets and maintains longstanding relationships with many leading retailers and consumer product companies in the world.

The Notes have not been registered under the Securities Act of 1933 (the "Act") or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption therefrom. The Notes were offered only to qualified institutional buyers in reliance Rule 144A under the Act and to certain non-US persons outside the United States in reliance on Regulation S under the Act.

About Levine Leichtman Capital Partners

Levine Leichtman Capital Partners is a Los Angeles, California-based investment firm that manages approximately $5.0 billion of institutional investment capital through private equity partnerships, distressed debt and leveraged loan funds. LLCP is currently making new investments through Levine Leichtman Capital Partners IV, L.P., Levine Leichtman Capital Partners SBIC Fund, L.P. and Levine Leichtman Capital Partners Deep Value Fund, L.P. Prior investments by Levine Leichtman Capital Partners include CiCi's Pizza, Hackney Ladish, Jon Douglas Real Estate Group, Overhill Farms and Quizno's. 

This press release shall not constitute an offer to sell or the solicitation of an offer to buy in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward-Looking Statements

Some of the statements made in this press release are forward looking in nature. These statements are based on management's current expectations or beliefs.  These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of SCN's control, which could cause actual events to differ materially from those expressed or implied by the statements.  

SOURCE Levine Leichtman Capital Partners