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American Capital Celebrates 10 Years as a Publicly Traded Company
On August 29, 2007 American Capital Strategies Ltd., the only alternative asset management company in the S&P 500, the largest U.S. publicly traded private equity fund and one of the largest publicly traded alternative asset managers, celebrated 10 years as a publicly traded company on the NASDAQ Global Select Market. The Company commemorated its anniversary by ringing the opening bell at the NASDAQ MarketSite location in New York on that day. American Capital’s senior management team, led by Chairman, Chief Executive Officer and President Malon Wilkus and its Board of Directors participated in the ceremony. For a video presentation of the ceremony, please visit the American Capital multimedia library.
“Today American Capital reaches another milestone, commemorating 10 years as a publicly traded company,” said Malon Wilkus, American Capital Chairman, CEO and President. “The average American investor typically can only invest in publicly traded companies, which represent only 2% of all the companies in the United States. American Capital makes it possible to invest in a portfolio of companies that are part of the 98% of companies that are private. Private companies drive employment, innovation and growth in our economy. American Capital invests in private companies; and you can invest in us.”
For the complete release, click here.
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American Capital Added to S&P 500; First Publicly Traded Alternative Asset Management Company in the S&P 500
In July, Standard & Poor's (S&P) selected American Capital to be included in the S&P 500 Index, effective after the close of trading July 6, 2007. American Capital was added to the S&P 500 in the category of Financials, Asset Management and Custody Banks. The Company is approximately the 355th firm in size, based on market capitalization, within the Index. American Capital is the first publicly traded alternative asset management company to be included in the S&P 500 and the largest U.S. publicly traded private equity firm.
“We are honored and proud to be recognized among the foremost companies in the world,” said Malon Wilkus, American Capital Chairman, CEO and President. “Inclusion in the S&P 500, one of the most commonly used benchmarks for the overall U.S. stock market, validates American Capital’s strategy to build the first and one of the largest publicly traded alternative asset managers and the largest publicly traded private equity fund in the U.S. In less than ten years from our August 1997 initial public offering, American Capital has grown to be the 355th largest US publicly traded company in the S&P 500, in terms of market capitalization, a tremendous achievement. During that period, we have paid out over $1.7 billion of dividends and provided a 22% compounded annual return to our shareholders. Among other achievements, we pioneered the formation of permanent capital in the private equity industry. We pioneered the securitization of our asset class and achieved BBB investment grade ratings. We established and manage European Capital (LSE: ECAS), a $2.5 billion private equity fund, and recently listed it on the London Stock Exchange. I congratulate American Capital’s employees for their hard work and well earned recognition and thank our shareholders for their support.”
For the complete release, click here.
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European Capital Completes Initial Public Offering
In May, American Capital’s affiliate European Capital Limited completed an initial public offering of its ordinary shares. The shares have been admitted to the Official List of the U.K. Financial Services Authority and are traded on the London Stock Exchange's main market for listed securities under the symbol ECAS.
This press release is neither an offer to sell nor a solicitation of an offer to buy shares of European Capital.
For more information, visit www.EuropeanCapital.com
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European Capital Opens Offices in Frankfurt and Madrid; Frankfurt Office Closes First Transaction, Strengthens Team
In July, European Capital announced the opening of its Madrid office, which will be in operation pending the approval of the Financial Services Authority (FSA) and La Comisión Nacional del Mercado de Valores (CNMV). The office will concentrate on mezzanine investments, while also providing flexible financing for the Spanish market. Leading European Capital in Madrid is Luis Felipe Castellanos, Managing Director.
In April, European Capital announced the opening of its Frankfurt office. The office will also concentrate on mezzanine investments. Leading European Capital in Frankfurt is Robert von Finckenstein, Managing Director.
Prior to joining European Capital in Madrid, Mr. Castellanos was Managing Director and Head of Leveraged Finance of Spain and Portugal at BNP Paribas in Madrid. At BNP Paribas, he managed LBOs, MBOs, recapitalizations and refinancings, among other types of transactions. While at BNP Paribas, Luis Felipe also held other positions, including Head of Energy, Commodities, Export & Project Finance for Spain and Portugal and Director of the Project Finance & Utilities Group first in Paris and then in New York. Mr. Castellanos began his career at ACS-Dragados in Madrid, working in the M&A Group. He holds a degree in economics from the Universidad Autónoma in Madrid.
Mr. von Finckenstein joined European Capital in Frankfurt after serving as Managing Director and Co-Head of DAM Advisors Ltd. in London. At DAM Advisors he originated mezzanine and subordinated debt transactions for German Mittelstand companies. Prior to DAM Advisors, he was a Director of Global Loan Products at Dresdner Kleinwort Wasserstein’s Acquisition Finance Group in Frankfurt where he structured and arranged complex transactions, particularly in the telecommunications, media and technology sector.
Read the complete Madrid opening release and the complete Frankfurt opening release.
In July, the Frankfurt office completed the €10 million ($13.8 million) investment in the mezzanine facility of Euro-Druckservice AG, a leading commercial printer operating in central and eastern Europe. European Capital’s investment represents a significant share of the mezzanine facility arranged by Dresdner Kleinwort and supported the acquisition of EDS by 3i.
For the complete press release, click here.
The Frankfurt office has developed a strong local team. For the complete press release, click here.
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American Capital Completes the Syndication of Over $1.2 billion in Credit Facilities for 13 Portfolio Companies
In August and September American Capital announced that it has successfully syndicated over $1.2 billion in credit facilities for 13 portfolio companies. These credit facilities were syndicated to approximately 120 institutions and included transactions such as SMG, Appleseed’s Brands, WIS International, TestAmerica-STL, Exstream Software LLC, triVIN Inc. and Barton Cotton Inc.
“Despite the current volatility within broader credit markets, American Capital continues to be successful in syndicating senior credit facilities for its middle market portfolio companies. We have the largest middle market deal flow in our industry and are thereby extraordinarily selective as to companies in which we invest. This has allowed us to grow a portfolio of strong portfolio companies, which other financial institutions find attractive,” said Tom McHale, American Capital Senior Vice President of Finance. “Our Syndications Group has significant experience in structuring, pricing, and syndicating senior debt facilities for transactions in a variety of industries. The group has worked with a wide range of distinguished financial institutions and senior loan market investors in syndicating these three syndicated transactions, and will continue to utilize their broad stable of investor relationships in transactions going forward.”
Read the complete August release and the complete September release.
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American Capital Closes Commercial Real Estate CDO
In July, American Capital announced the further expansion of its alternative asset management business through the establishment of its first commercial real estate collateralized debt obligation trust, ACAS CRE CDO 2007-1 Ltd. (“ACAS CRE CDO”). ACAS CRE CDO is backed by 121 subordinate tranches of bonds (“CMBS Bonds”) issued by 22 commercial mortgage backed securities trusts.
For the complete release, click here.
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American Capital Declares Q3 2007 Dividend of $0.92 Dividend
In July, American Capital declared a third quarter 2007 dividend of $0.92 per share to record holders as of September 7, 2007, payable on October 1, 2007. This dividend is an 11% increase over the third quarter 2006 dividend of $0.83 per share. American Capital has paid a total of $1.7 billion in dividends and paid or declared dividends of $25.16 per share since its August 1997 IPO at $15.00 per share.
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September Equity Offering Totals $225 Million
In September, American Capital closed a public offering of 6 million shares of its common stock at $39.40 per share (the “Offering Price”). All of the shares were borrowed and sold by Citigroup Global Markets Inc., UBS Securities LLC and Wachovia Capital Markets, LLC or certain of their respective affiliates (the “Counter-Parties” and each, a “Counter-Party”) in connection with agreements between the Counter-Parties and American Capital (the "Forward Sale Agreements"). The Forward Sale Agreements provide for the purchase by the Counter-Parties of an aggregate 6 million shares of common stock from American Capital at a future date at the Offering Price, less certain adjustments. American Capital will receive the proceeds from the sale of common stock pursuant to the Forward Sale Agreements, which initially are valued at $225 million, at a future date upon settlement.
In addition, American Capital granted the underwriters an option to purchase up to an additional 900,000 shares of common stock to cover over-allotments to be sold directly by the Company.
Citigroup Global Markets Inc., UBS Securities LLC and Wachovia Capital Markets, LLC are the joint-lead book-running managers for the offering. A.G. Edwards & Sons, Inc., Robert W. Baird & Co. Incorporated, BB&T Capital Markets, a division of Scott and Stringfellow, Inc., William Blair & Company, L.L.C. and Stifel, Nicolaus & Company, Incorporated are co-managers for the offering.
This newsletter is neither an offer to sell nor a solicitation of an offer to buy shares of common stock. The offering of securities can be made only by means of a prospectus and a related prospectus supplement.
For the complete release, click here.
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June Equity Offering Totals $1 Billion
In June, American Capital closed a public offering of 20 million shares of its common stock at $45.05 per share (the “Offering Price”). Of those shares, 15 million shares were sold directly by American Capital for approximately $676 million in gross proceeds. The remaining 5 million shares were borrowed and sold by Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wachovia Capital Markets, LLC or certain of their respective affiliates (the “Counter-Parties” and each, a “Counter-Party”) for approximately $225 million in gross proceeds in connection with agreements between the Counter-Parties and American Capital (the "Forward Sale Agreements"). The Forward Sale Agreements provide for the purchase by the Counter-Parties of an aggregate 5 million shares of common stock from American Capital at a future date at the Offering Price, less certain adjustments. American Capital will receive the proceeds from the sale of common stock pursuant to the Forward Sale Agreements at a future date upon settlement.
In addition, American Capital granted the underwriters an option to purchase up to an additional 3,000,000 shares of common stock to cover over-allotments to be sold directly by the Company. The underwriters exercised the option in part for 2,400,000 shares, resulting in gross proceeds of approximately $108 million. Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wachovia Capital Markets, LLC, Morgan Stanley & Co. Incorporated, UBS Securities LLC, A.G. Edwards & Sons, Inc. and RBC Capital Markets Corporation were underwriters for the offering.
This newsletter is neither an offer to sell nor a solicitation of an offer to buy shares of common stock. The offering of securities can be made only by means of a prospectus and a related prospectus supplement.
For the complete release, click here.
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American Capital Completes $500 Million Securitization
American Capital announced that ACAS Business Loan Trust 2007-2, a wholly owned subsidiary of American Capital, has issued $338 million of investment grade class A and B notes backed by $500 million of senior and subordinated business loans originated and acquired by American Capital. Citigroup Global Markets Inc. and JP Morgan Securities Inc. acted as co-lead managers and joint bookrunners of the securities. Banc of America Securities LLC, Credit Suisse Securities (USA) Inc., HVB Capital Markets, Inc., HSBC Bank USA, National Association and Wachovia Capital Markets LLC were co-managers. The blended pricing of the offered notes, excluding fees, is LIBOR plus 47 basis points. American Capital retained all the class C through F notes in the securitization.
The private placement note offering to investors consists of the following offered notes:
| Class of Note Sold |
Amount Sold
($Millions) |
Rating
S&P/Moody's/Fitch |
Spread Over LIBOR
(Basis Points) |
Expected
Weighted Average Life |
| A |
$300.5 |
AAA/Aaa/AAA |
40 |
2.99 years |
| B |
$37.5 |
AA/Aa2/AA |
100 |
3.75 years |
| Total & Weighted Average |
$338 |
|
47 |
3.07 years |
For the complete release, click here.
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American Capital Sells $550 Million in Senior Unsecured Notes
In July, American Capital closed its public offering of $550 million of its senior unsecured notes (the “notes”). The notes bear interest at a fixed rate of 6.85% and mature in 2012. The notes are senior unsecured debt securities of American Capital and rank equally in right of payment with all of American Capital’s other outstanding senior unsecured obligations. Moody’s Investors Services, Standard & Poor's and Fitch Ratings rated the notes Baa2, BBB and BBB, respectively.
J.P. Morgan Securities Inc. and Banc of America Securities LLC were the joint book-running managers. Bear, Stearns & Co. Inc. and HSBC Securities (USA) Inc. were co-managers.
American Capital expects to use substantially all of the net proceeds of approximately $546.1 million from the sale of its notes to reduce the borrowings under American Capital’s existing revolving credit facilities and to fund investments. Reducing borrowings under the revolving credit facilities will create availability under these facilities, which will generally be used for funding future American Capital investments and general corporate purposes.
This newsletter is neither an offer to sell nor a solicitation of an offer to buy notes. The offering of these notes can be made only by means of a prospectus and a related prospectus supplement.
For the complete release, click here.
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American Capital Obtains $1.6 Billion Unsecured Credit Facility
American Capital obtained an unsecured revolving credit facility with an aggregate commitment of approximately $1.6 billion with Wachovia Bank, N.A. as administrative agent and a syndicate of lenders. The facility amount may be expanded through new or additional commitments up to approximately $1.8 billion in accordance with the terms and conditions set forth in the credit agreement. The new credit facility has a five year term and replaces American Capital’s prior $900 million unsecured line of credit. Wachovia Capital Markets, LLC was the sole bookrunner and a joint lead-arranger for the transaction. BB&T Capital Markets, LLC, also served as a joint lead-arranger. Citicorp North America, Inc., JPMorgan Chase Bank, N.A. and Credit Suisse, Cayman Islands Branch, served as co-documentation agents.
For the complete release, click here.
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American Capital Closes Managed CLO For $400 Million
American Capital expanded its alternative asset management business through the issuance of a $400 million collateralized loan obligation (“CLO”), ACAS CLO 2007-1 Ltd. (“ACAS CLO 2007-1”). ACAS CLO 2007-1 is invested primarily in middle market and broadly syndicated senior secured loans. The bonds issued by ACAS CLO 2007-1 to finance these assets included Aa1/AAA/AAA through Ba2/BB/BB rated tranches, and a non-rated equity tranche. American Capital Asset Management, LLC (“American Capital Asset Management”), a wholly-owned portfolio company of American Capital, manages ACAS CLO 2007-1, in exchange for an annual management fee of 67.5 basis points and an incentive fee of 20% of the return on the non-rated tranche, subject to certain hurdles.
For the complete release, click here.
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$548 Million in Exstream Software, LLC
American Capital invested $548 million in the recapitalization of Exstream Software, LLC, a leading provider of enterprise software for the rapid design and delivery of personalized communications. American Capital’s investment took the form of a senior term loan, senior and junior subordinated debt and convertible preferred and common equity. American Capital also provided a revolving credit facility. Exstream’s founders and other management also made a significant investment in equity alongside American Capital, retaining more than 40% ownership of the Company on a fully diluted basis through reinvestment and a new option program. There was no change to the leadership or strategic direction of Exstream post-close.
Founded in 1998, Exstream Software is an enterprise software provider whose flagship product, Dialogue, is a comprehensive platform for building and deploying high-volume and interactive document applications across the enterprise. It was designed with an open architecture and robust functionality to easily connect with an enterprise's data sources, systems and web infrastructure. With just one solution, customers can create relevant and timely communications that connect with their customers at every touch point. Companies that adopt Dialogue report significantly reduced costs, fewer calls to customer service and tripled response rates. Exstream’s recently released Dialogue Live, which is fully integrated with Dialogue 6.0, also automates integration of field-edited documents with centralized corporate systems and document production.
Consistently ranked among the fastest growing technology companies, Exstream has more than 300 employees and more than 400 blue-chip and middle market customers in a variety of industries worldwide.
For the complete press release, click here.
Contact Jon Isaacson, Managing Director, at (301) 951-6122 or Miles Arnone, Managing Director, Technology Group, at (650) 289-4560.
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$100 Million in Oceana Media Finance, LLC
American Capital and an affiliate committed $100 million in equity capital to Oceana Media Finance, LLC, a newly-formed specialty finance company that provides asset-backed secured financing for the production and marketing of independently produced feature films. American Capital Equity Fund I LLC, a fund managed by American Capital, provided 30% of the American Capital equity investment. Oceana Media Finance’s management team also invested equity in the Company.
Oceana Media Finance provides asset-backed financing for the production and marketing of independently produced feature films with production budgets between $10 million and $40 million. Oceana’s product offering consists of four types of financing, all of which are secured by the rights and cash flows of the film, including: pre-production bridge loans, mezzanine gap loans, print and advertising (P&A) financing and, to a lesser extent, equity investments. The Company was founded in 2007 by Myles Nestel, who has over 10 years of experience in the film finance industry. Nestel has been involved in 70 film financing transactions totaling over $1 billion in production value. Nestel’s portfolio produced attractive returns and experienced no loss of principal on any debt financings. Oceana will be headquartered in Los Angeles, CA.
For the complete press release, click here.
Contact Bob Grunewald, Managing Director, Financial Services Group, at (301) 951-6122.
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$631 Million in the One Stop Buyout ™ of SMG
American Capital and an affiliate invested $631 million in the One Stop Buyout ™ of SMG, the leading provider of entertainment and conference venue management services worldwide. American Capital’s investment took the form of a senior term loan, senior subordinated debt, holding company PIK notes and convertible preferred and common equity. American Capital also provided a revolving credit facility. American Capital Equity Fund I LLC, a fund managed by American Capital, provided 30% of the American Capital equity investment. American Capital now owns approximately 83% of SMG, on a fully diluted basis.
Founded in 1977, SMG currently manages over 200 venues, including arenas, stadiums, convention centers, exhibition halls, trade centers, theaters and performing arts centers. The Company’s facilities are primarily located throughout the U.S., with international facilities in the U.K., Germany, Ireland, Canada, Puerto Rico, Mexico, Norway and the U.A.E. SMG managed venues include Oracle Arena in Oakland, CA , Reliant Stadium in Houston, TX, the Moscone Center in San Francisco, CA, the Long Beach Convention Center in Long Beach, CA, the Manchester Evening News Arena in Manchester, U.K., and the König-Pilsener Arena in Oberhausen, Germany. SMG is headquartered in Philadelphia and has over 34,000 employees worldwide.
For the complete press release, click here.
Contact Pankaj Gupta, Principal, at (212) 213-2009.
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$106 Million in the One Stop Buyout ™ of triVIN, Inc.
American Capital and an affiliate invested $106 million in the One Stop Buyout ™ of triVIN, Inc., a leading provider of title management services to automobile lenders and electronic vehicle registration services to automobile dealers. triVIN provides its services through two wholly-owned subsidiaries, FDI Collateral Management Inc. (“FDI”) and General Systems Solutions Inc. (“GSS”). American Capital’s investment took the form of a senior term loan, senior and junior subordinated debt and convertible preferred and common equity. American Capital also provided a revolving credit facility. American Capital Equity Fund I LLC, a fund managed by American Capital, provided 30% of the American Capital equity investment. triVIN’s management team also made a significant equity investment.
triVIN consists of two operating subsidiaries, FDI and GSS. FDI provides third-party electronic and paper-based lien and title solutions that allow lenders to outsource the management of vehicle titles held as collateral for loans. GSS provides electronic vehicle registration software and services that allow auto dealers and fleet companies to electronically register vehicles directly with state Departments of Motor Vehicles. FDI provides vehicle title administration services to some of the nation's largest banks and captive automotive finance companies. GSS’s customers are franchised and independent automobile dealers, as well as national fleet and rental companies. triVIN is headquartered in Groton, CT and has facilities in Vooreheesville, NY and Sacramento, CA. triVIN has more than 600 employees.
For the complete press release, click here.
Contact Sean Eagle, Principal, at (301) 951-6122.
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One Stop Buyout™ of Imaging Business Machines LLC
American Capital invested in the One Stop Buyout™ of Imaging Business Machines LLC, a leading provider of high speed, intelligent document scanning hardware and software, as well as recurring support and maintenance services. American Capital’s investment took the form of a first lien term loan, senior subordinated debt, convertible preferred equity and common equity. American Capital also provided a revolving credit facility. American Capital Equity Fund I LLC, a fund managed by American Capital, provided 30% of the American Capital equity investment. Imaging Business Machines’ management team also invested in the preferred and common equity.
Imaging Business Machines’ ImageTrac Scanning Platform possesses open-track transports and inline software and pocketing capabilities. The Company’s software enables the execution of rules-based applications, the recognition of a wide variety of documents and the ability to send data collected from the scanning process to end users’ back-end systems. IBML also provides support and maintenance to its extensive installed base of scanning equipment. Founded in 1992 by Gary Murphy, IBML is headquartered in Birmingham, AL and has sales and support offices in Konstanz, Germany and Guilford, UK.
For the complete press release, click here.
Contact Jeff MacDowell, Managing Director, at (214) 273-6633.
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$108 Million Investment in Paradigm Precision Holdings LLC for the One Stop Buyouts™ of Smith West, Inc., Palmer Manufacturing Co., Inc. and Eurocast S.A
American Capital and an affiliate invested $108 million in Paradigm Precision Holdings LLC for the One Stop Buyouts™ of Smith West, Inc., Palmer Manufacturing Co., Inc. and Eurocast S.A., leading manufacturers of precision machined aerospace engine components. American Capital’s investment took the form of a senior credit facility, senior secured subordinated notes and common equity. American Capital Equity Fund I LLC, a fund managed by American Capital, provided 30% of the American Capital equity investment. American Capital partnered with private equity sponsor Wimbleton Partners LLC on the Smith West transaction and Radius Partners LLC on the Palmer and Eurocast transactions.
Paradigm is a newly-formed entity established to pursue the build-up of machining suppliers in the aerospace industry. The buyouts of Smith West, Palmer and Eurocast are the initial steps in Paradigm’s acquisition strategy to combine and grow multiple machining suppliers into a low cost, high performance international competitor. Paradigm relies upon nearly 450 skilled employees to manufacture complex components with exotic metal alloys, close tolerances, wide diameters and 5-axis milling. Customers, including three of the four largest jet engine manufacturers worldwide, use Paradigm’s components to assemble a well-diversified mix of jet engine platforms that power commercial, business and defense aircraft. These platforms include the “next generation” turbofan engine designed by GE Aviation, the GEnx, that will power the new 787 Dreamliner by Boeing, the new 747-8 by Boeing and the new A350 by Airbus.
Wimbleton Partners sponsored the acquisition of Smith West, which closed on February 20, 2007, and recruited Paradigm’s management team. Founded in 1977, Smith West is a manufacturer of precision machined jet engine components including housings, cases, shroud segments, half rings, combustion liners, flange and thin wall rings and torque tubes. Smith West’s components are used for commercial, business and defense jet engine platforms produced by GE Aviation, Honeywell Aerospace, Rolls-Royce Group plc and others. Smith West has manufacturing facilities in Tempe, AZ (headquarters) and Guaymas, Mexico.
Radius Partners sponsored the acquisitions of Palmer and its Tunisian subsidiary Eurocast, which closed on April 10, 2007, and facilitated the sales of non-core assets. Founded in 1965 by three families, Palmer machines and assembles complex aircraft engine components with a focus on combustion (liners and nozzles), rotating hardware (disks, seals, shafts and spools), and structural (casings, frames and housings) components. Based in Malden, MA, Palmer’s products serve all segments of the aerospace industry, including commercial, regional and business jets as well as military and marine procurements. Palmer’s primary customers are GE Aviation and Volvo Aero Corp. Based in Tunis, Tunisia, Eurocast manufactures castings and performs light machining for customers such as GE Aviation, Rolls-Royce, Volvo and Snecma.
For the complete press release, click here.
Contact Myung Yi, Managing Director, Special Situations, at (301) 951-6122.
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$125 Million in Velocity Financial Group, Inc.
American Capital and an affiliate invested $125 million in Velocity Financial Group, Inc., a newly formed specialty finance company that will provide equipment financing and working capital to middle market and venture-backed companies. American Capital’s investment took the form of senior subordinated debt and preferred equity. American Capital Equity Fund I LLC, a fund managed by American Capital, provided 30% of the American Capital equity investment. Velocity Financial Group’s management invested alongside American Capital.
Velocity is a specialty finance company providing equipment financing and working capital to middle market and venture-backed companies. Velocity was launched in May 2007 with approximately $400 million in available capital, including American Capital’s investment. It was formed by a team of former executives from Comdisco Inc., including the former CEO of the company’s technology leasing division and the head of the company’s east coast venture finance division. Velocity provides equipment leasing to middle market companies with revenue of between $20 million and $1 billion through its Middle Markets Group and venture leasing and lending to venture-backed companies through its Ventures Group. Velocity is headquartered in Chicago and will serve the venture community out of offices in Boston and Silicon Valley.
For the complete press release, click here.
Contact Bob Grunewald, Managing Director, Financial Services Group, at (301) 951-6122.
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$160 Million to Support Add-On Acquisition by Consolidated Bedding, Inc.
American Capital invested $160 million in Consolidated Bedding Inc. to support its acquisition and consolidation of The Spring Air Company (“TSAC”) and six of TSAC’s licensees, including eight manufacturing facilities. Systemwide Spring Air sales are over $400 million, making it one of the largest innerspring mattress brands in the U.S. Spring Air sells through most major department stores, furniture stores and mattress retailers under brand names including Spring Air Back Supporter®, Nature’s Rest®, Chattam & Wells®, and Four Seasons®. Prior to the transaction, Consolidated Bedding was the largest licensee of The Spring Air Company. American Capital’s investment took the form of a senior unirate term loan and junior PIK notes. American Capital is also providing a revolving credit facility. H.I.G. Capital LLC, the equity sponsor and majority owner of Consolidated Bedding, invested in subordinated debt and preferred equity.
Established in 2005 with the merger of Spring Air Partners-North America and American Bedding Industries, two TSAC licensees, Consolidated Bedding is a leading manufacturer and distributor of mattresses and the largest TSAC licensee worldwide. Consolidated Bedding manufactures innerspring mattresses in plants in Florida, Texas, California, Ohio and New Jersey. The merger adds factories in Washington, Utah, Arizona, Colorado, Missouri, Massachusetts, Alabama and Georgia. Its broad range of mattresses at all price points are sold through four primary channels—furniture, department, specialty sleep and club stores. Spring Air will be headquartered in Chicago, IL and will employ nearly 1,150 employees.
For the complete press release, click here.
Contact Bowen Diehl, Managing Director, at (214) 273-6630.
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$50 Million in Recapitalization of Portfolio Company TransFirst Holdings, Inc.
American Capital invested $50 million in its portfolio company TransFirst Holdings Inc., a leading provider of transaction processing services and payment technologies. American Capital’s investment takes the form of a second lien term note and supports the acquisition of TransFirst led by its new private equity sponsor Welsh, Carson, Anderson & Stowe. TransFirst was originally owned by GTCR Golder Rauner LLC.
American Capital first invested in TransFirst in April 2004, supporting TransFirst's acquisition of the third party and agent bank merchant division of Fifth Third Bank (Nasdaq: FITB) Processing Solutions. American Capital made a subsequent investment in TransFirst in August 2006 to support its recapitalization. American Capital partnered with GTCR in both investments.
Founded in 1995, Dallas-based TransFirst is a provider of a complete line of merchant credit and debit transaction processing services, including transaction authorization, transaction data capture and transmission, merchant reporting, merchant acceptance, transaction settlement and clearing, real-time transaction monitoring and transaction charge-back solutions. TransFirst's customer base is made up of more than 1,300 sales channel partners representing approximately 155,000 merchants throughout the U.S. In addition to its headquarters, TransFirst also has operating facilities in Colorado, Nebraska, Kansas, Wisconsin and California and employs over 560.
For more information about TransFirst, click here.
Contact Chris Carey, Principal, at (212) 213-2009.
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$38 Million in CAMP Systems International, Inc.
American Capital invested $38 million in CAMP Systems International Inc., the leading provider of subscription-based maintenance tracking information services to the corporate aviation market. American Capital’s investment supported the recapitalization of the Company and took the form of a second lien term loan. Merrill Lynch Capital led the syndication of a term loan B. CAMP Systems is a portfolio company of Warburg Pincus, the global private equity firm.
Founded in 1967, CAMP Systems International has the largest market share for the provision of maintenance tracking services to corporate aircraft. The Company’s service alerts owners and operators and their maintenance staffs to maintenance requirements, provides online and live technical support and serves as a data storage warehouse for plane maintenance records. The Company also provides flight scheduling services and market intelligence to aircraft brokers. CAMP Systems is headquartered in Islip, NY and CAMP Europe is based in Paris, France. CAMP Systems also has facilities in Wichita, KS, Dania, FL, Tinton Falls, NJ and Savannah, GA, Montreal, Canada and Hyderabad, India.
For the complete press release, click here.
Contact Adam Spence, Managing Director, at (212) 219-2009.
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Additional Financing to Support Add-On Acquisition by Vision Solutions, Inc.
American Capital invested additional second lien financing in its portfolio company Vision Solutions Inc., a leading developer of high availability, disaster recovery and data management software solutions for the System i market. American Capital’s investment supported the acquisition of Lakeview Technology Inc., which also produces high availability software. High availability software creates and maintains copies of computer system elements, providing an efficient backup system in response to power outages, disasters and other unplanned as well as planned computer system downtimes, such as hardware and software upgrades. American Capital previously provided second lien debt and equity financing to support the October 2006 merger of Vision Solutions and iTera Inc. Thoma Cressey Bravo Inc. is the majority owner of Vision Solutions. Vision Solution’s management team and American Capital hold minority equity stakes in Vision Solutions.
Lakeview Technology is a premier information availability company, providing high availability, data protection and data integration software solutions and services to businesses. Headquartered near Chicago, IL, Lakeview serves customers from offices in the U.S., Europe and Asia and through an extensive, growing partner network.
As IBM Corporation’s largest high availability Premier Business Partner, Vision Solutions is a recognized System i-solutions leader. The Company works closely with an international network of channel partners and IBM to deliver its industry-leading software, along with a powerful portfolio of services and support for protecting mission-critical applications and information from planned and unplanned downtime. Vision Solutions serves customers in a broad range of industries, including banking, retail, business services and pharmaceuticals development. Vision Solutions has corporate offices headquarters in Irvine, CA and offices worldwide.
For more information about Vision Solutions, click here.
Contact Natasha Volyanskaya, Principal, at (415) 591-0120.
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One Stop Financing to Support Acquisition of Cinelease, Inc.
American Capital Strategies Ltd. announced that it and an affiliate provided financing for Audax Group’s investment in Cinelease Inc., a supplier of lighting and grip equipment to the television, feature film, commercial, music video, and event industries. American Capital’s one stop leverage financing package took the form of a revolving credit facility and a unirate term loan. In addition, American Capital invested a minority position in the common equity of Cinelease. American Capital Equity Fund I LLC (“ACE”), a fund managed by American Capital, provided 30% of the American Capital equity investment.
“This is our third platform transaction with Audax, a firm that has proven to be a strong financial partner with a track record of sound investments,” said Brian Graff, American Capital Regional Managing Director. “Cinelease has been renting lighting and grip equipment to hundreds of entertainment and commercial production companies for nearly 30 years and is a welcomed addition to our well-rounded portfolio.”
For the complete press release, click here.
Contact Kenneth Jones, Principal, at (610) 238-0210.
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Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital’s current performance may be lower or higher than the performance data quoted above.
This newsletter contains forward-looking statements. The statements regarding expected results of American Capital Strategies 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 and international economic conditions, and changes in the conditions of the industries in which American Capital has made investments. This newsletter is neither an offer to sell nor a solicitation of an offer to buy shares of common stock. The offering of securities can be made only by means of a prospectus and a related prospectus supplement.
Two Bethesda Metro Center
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Bethesda, MD 20814
Phone: (301) 951-6122
Fax: (301) 654-6714
Info@AmericanCapital.com
Nasdaq: ACAS
www.AmericanCapital.com
(800) 248-9340
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