Babson Capital Management announced that it provided subordinated debt and made an equity co-investment to support Stone Arch Capital‘s recapitalization of Asset Marketing Services. Burnsville, Minn.-based AMS is a direct marketer of collectible coins and proprietary branded jewelry and watches.
Babson Capital Management LLC, a global investment management firm with more than $154 billion in assets under management and operations on four continents, today announced it provided subordinated debt and made an equity co-investment to support Stone Arch Capital’s recapitalization of Asset Marketing Services (AMS).
Babson Capital served as the lead provider of subordinated debt on the transaction.
Burnsville, Minn.-based AMS is a leading multi-channel direct marketer of high-value collectible coins and proprietary branded jewelry and watches. The coin division of AMS sources and markets rare and historical coins as well as new releases from government monetary authorities, distributors and wholesale dealers worldwide. AMS’ jewelry division, known as “Stauer”, designs, sources, brands and markets high-quality jewelry and watches at affordable prices.
“Babson Capital’s deep experience in financing lower-middle-market companies and its longstanding relationship with Stone Arch Capital combined to make the recapitalization of Asset Marketing Services an efficient and seamless transaction,” said Charlie Lannin, Managing Partner of Stone Arch Capital. “The expertise and relationship-oriented approach of Babson Capital’s Mezzanine & Private Equity Group have made them a value-added partner on every investment we have been involved in together.”
“Babson Capital is grateful for the opportunity to participate alongside Stone Arch Capital in the recapitalization of AMS,” said Bob Erwin, Managing Director and a senior member of Babson Capital’s Mezzanine & Private Equity Group. “As a limited partner in Stone Arch Capital’s funds, we have tracked the significant growth and value created by Stone Arch Capital and AMS’ management since the original acquisition of AMS by Stone Arch Capital in 2009. AMS is well-positioned to generate additional growth and value going forward.”
About Stone Arch Capital
Stone Arch Capital, based in Minneapolis, Minn., is a private equity group that makes equity investments in lower-middle-market companies primarily based in the Midwest with revenues typically ranging from $20 million to $150 million. The firm partners with management to create long-term value through growth opportunities and operational refinement. The firm invests in a wide variety of industries excluding real estate, technology, and commodity businesses. For more information, visit www.stonearchcapital.com .
About Babson Capital
Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have over $154 billion in assets under management as of September 30, 2012. Through proprietary research and a focus on investment fundamentals, we develop products and strategies that leverage our broad array of expertise in global corporate debt markets, structured products, debt and equity financing for commercial real estate, and alternatives. Headquartered in Boston, the firm’s subsidiaries include Cornerstone Real Estate Advisers LLC and Wood Creek Capital Management, LLC. Babson Capital is a member of the MassMutual Financial Group and is on the web at www.BabsonCapital.com .
SOURCE: Babson Capital Management LLC