• Senior Secured Loan Program Closes $2.2 Billion in Commitments During the Fourth Quarter of 2013;
• Approximately $5 Billion in Commitments Closed by SSLP During 2013.
The Senior Secured Loan Program (SSLP), jointly managed by an affiliate of Ares Capital Corporation and an affiliate of GE Capital, announced today that during the fourth quarter it closed 13 financing transactions, including refinancings of existing portfolio companies, totaling $2.2 billion. Since January 1, 2010, the SSLP has committed approximately $14.2 billion to middle market borrowers, including $5.1 billion during 2013.
Below is a brief description of select fourth quarter SSLP transactions.
PODS, Inc. / Arcapita
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $350 million senior secured term loan and a $40 million senior secured delayed draw term loan provided by SSLP to support the refinancing of PODS, Inc., a portfolio company of Arcapita. PODS is a leading provider of portable storage and moving solutions specializing in residential markets.
Caliber Collision Centers / OMERS Private Equity
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $270 million senior secured term loan provided by the SSLP to support the acquisition of Caliber Collision Centers by OMERS Private Equity. Caliber Collision Centers is the largest independently-owned, multi-site collision repair operator in the U.S. Through its GE Antares Capital subsidiary, GE Capital also provided a $75 million senior secured revolving facility in support of the transaction.
Zywave Insurance Solutions / Aurora Capital Group
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $175 million senior secured term loan and a $15 million senior secured delayed draw term loan provided by SSLP to support the acquisition of Zywave Insurance Solutions by Aurora Capital Group. Zywave Insurance Solutions is a leading provider of software and technology-enabled content and analytical solutions on a software-as-a-service basis to insurance brokers in the U.S., Canada and the U.K.
Caplugs / Windjammer Capital Investors
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a senior secured term loan provided by SSLP to support the acquisition of Tri-Star Protector Service Company by Caplugs, a portfolio company of Windjammer Capital Investors. Caplugs is a premier North American manufacturer of plastic protection products. Through its GE Antares Capital subsidiary, GE Capital also provided a senior secured revolving credit facility in support of the transaction.
Engineered Controls International / Windjammer Capital Investors
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a senior secured term loan and a senior secured delayed draw term loan provided by SSLP to support the acquisition of Engineered Controls International by Windjammer Capital Investors. ECI is a leading manufacturer of a complete line of regulators, valves and other flow control equipment used by safety control pressurized gases in a variety of residential, commercial and industrial end-market applications. Through its GE Antares Capital subsidiary, GE Capital also provided a senior secured revolving credit facility in support of the transaction.
US Anesthesia Partners / Welsh, Carson, Anderson & Stowe
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a senior secured credit facility (provided by SSLP, Ares Capital and GE Capital Markets) to support the addition of JLR Medical Group, and Pinnacle Anesthesia Consultants, as founding partners with Greater Houston Anesthesiology in U.S. Anesthesia Partners, bringing together three of the largest anesthesia groups in the country. U.S. Anesthesia Partners, one of the largest pure-play anesthesia providers in the U.S., is a portfolio company of Welsh, Carson, Anderson, & Stowe.
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. Its members are comprised of Ares Capital Corporation and GE Global Sponsor Finance LLC. 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 $11 billion of available capital and can hold up to $350 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 (arescapitalcorp.com) is a leading specialty finance company that provides one-stop financing solutions to U.S. middle-market companies and private equity sponsors. Ares Capital 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, a global alternative asset manager and a SEC-registered investment adviser with approximately $74 billion of assets under management as of December 31, 2013.
About GE Capital
GE Capital (gecapital.com) offers consumers and businesses around the globe an array of financial products and services. GE (ge.com) 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. Building, powering, moving and curing the world. Not just imagining. Doing. GE works.
About GE Antares Capital
GE Antares (geantares.com) is a unit of GE Capital. 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.
About PODS, Inc.
Founded in 1998 and headquartered in Clearwater, Florida, PODS is a provider of portable storage and moving solutions for residential and business customers. PODS (pods.com) has 145 locations in the United States, Australia, and Canada, consisting of 33 company-owned locations and 177 franchise locations. The Company delivers its specially designed storage containers to the customer’s location, which the customer can load at his convenience. Once the customer has completed his packing in the container, PODS will either take it to another location or will place it at a storage warehouse, until the final destination for the moving goods is ready to receive them. PODS containers are moved by trucks that are equipped with the Podzilla®, a patented hydraulic lift system, specially designed so that the contents of the container do not shift when loaded onto a truck.
About Caliber Collision Centers
Caliber Collision Centers (calibercollision.com) is the largest collision repair company in America with 162 I-CAR Gold Class Professional certified collision repair centers in California, Arizona, Nevada, Texas, Oklahoma, and Colorado. Caliber is consistently ranked among the highest customer satisfaction scores in the industry and backs all repair work with a written, lifetime warranty available at any of its 162 repair centers.
About OMERS Private Equity Inc. ("OPE")
OMERS Private Equity (omerspe.com) is the private equity investment arm of the OMERS Worldwide group of companies. OPE manages the private equity activities of the OMERS pension plan and has over CAD$6 billion of investments under management. The group's investment strategy includes the active ownership of businesses in North America and Europe. OPE is headquartered in Toronto, Canada, with offices in London and New York.
About Zywave Insurance Solutions
Zywave (zywave.com) is the leading provider of software-as-a-service (SaaS) technology solutions for the employee benefits and P&C insurance distribution industry. The company’s solutions include technology-enabled content and communication, agency automation, and business intelligence and analytics, designed to help insurance brokers of all sizes gain profitable market share. More than 2,700 clients, including 93 of the top 100 U.S. insurance firms, use Zywave’s proven solutions to help them differentiate from the competition, enhance client services, improve efficiencies and achieve organic growth.
About Aurora Capital Group
Aurora Capital Group (auroracap.com) is a Los Angeles-based private investment firm managing over $2.0 billion of capital across several private equity funds. Aurora’s traditional private equity vehicle, Aurora Equity Partners, focuses principally on control investments in middle market businesses with leading market positions, strong cash flow profiles, and actionable opportunities for growth in partnership with operating management. Aurora’s investors include leading public and corporate pension funds, endowments and foundations active in private equity investing.
Founded in 1948 in Buffalo, NY, Caplugs (caplugs.com) has been a leader in the product protection industry for over 60 years manufacturing caps, plugs, tubing, containers, edge liners, fasteners, netting, and masking products. The Company's line of protective products is used in a wide range of industries and is mission critical to its customers throughout manufacturing, transportation and storage. With facilities in New York, Pennsylvania, Texas, California and China, Caplugs is a trusted global partner for its customers.
About Engineered Controls International
Headquartered in Elon, North Carolina, Engineered Controls International is a leading global provider of mission critical, highly engineered flow control products used in the transportation, delivery, and storage of liquefied petroleum gas (“LPG”), liquefied natural gas (“LNG”), and industrial gases. ECI (regoproducts.com) designs and manufactures a comprehensive range of flow control valves and regulators that are sold to domestic and international markets under the RegO and Goddard brand names. As a market leader, ECI meets the demands of customers across the Americas, Europe, and Asia by offering products synonymous with trust and reliability as a consequence of their consistent quality and performance.
About Windjammer Capital Investors
Windjammer Capital Investors (windjammercapital.com) is a private investment firm focused on control and non-control investments in leading middle market businesses. The firm continues to support the add-on acquisition activities of its Fund III platform companies. In addition, Windjammer is investing in new platform businesses through its $726 million Senior Equity Fund IV, which closed in March 2013. Since its formation in 1990, Windjammer has invested over $1.1 billion in 50 companies across a broad range of industries.
About US Anesthesia Partners
U.S. Anesthesia Partners (usap.com) is a single-specialty physician services organization that offers practice management to anesthesiologists. It was formed by leading anesthesia practices to create a platform with the capital resources and expertise to invest in their practice support infrastructure and position them for continued success and growth within their markets. Key elements of USAP's business model are its single-specialty focus and its ability to offer anesthesiologists equity ownership in USAP. USAP and its affiliates have more than 1,200 anesthesia providers serving three major metropolitan markets. USAP is sponsored by Welsh, Carson, Anderson & Stowe, an investment firm with significant experience investing in and building leading healthcare companies.
About Welsh, Carson, Anderson, & Stowe ("WCAS")
Welsh, Carson, Anderson & Stowe (welshcarson.com) was formed in 1979 and has specialized its investment activities in two industries, information/business services and healthcare. WCAS has raised and managed $20 billion in capital and has a current portfolio of approximately 35 companies. Our strategy is to partner with outstanding management teams and build value for our investors through a combination of operational improvements, internal growth initiatives and strategic acquisitions.
Carl Drake - Ares Capital Corporation
P: 404-814-5204 - E: cdrake[.]aresmgmt.com.
Alexandra Abrams - GE Antares Capital
P: 312-441-7356 - E: alexandra.abrams[.]ge.com.