Brentwood Associates said Tuesday that it has completed its second dividend recap of The Teaching Company Holdings. The deal was financed through a $170 million credit facility. Brentwood, a consumer focused PE firm, said it has realized a return in capital in excess of its original investment. Ares Capital Corp. provided the incremental financing for the recap in the form of a delayed draw term loan.
Brentwood Associates (“Brentwood”), a consumer-focused private equity investment firm, announced it has completed a second recapitalization of its portfolio company, The Teaching Company Holdings, Inc. (“The Teaching Company” or the “Company”). This recapitalization, the second in the last twelve months, was financed through a $170 million credit facility. Brentwood has realized a return of capital in excess of its original investment, while leaving its ownership stake unchanged.
The Teaching Company is the nation’s leading developer and marketer of proprietary, premium-quality, university-level courses targeted at life-long learners. The Company markets its courses under “The Great Courses” brand (www.thegreatcourses.com) and currently offers more than 390 courses, spanning more than 5,600 hours of content across ten subject categories. Under Brentwood’s ownership, management has expanded the Company’s direct marketing efforts, made significant investments in branding and e-commerce, and continued to enhance the visual richness and production quality of the content library. The Company also recently launched its new digital distribution platform for content delivery, which currently offers digital downloads and will offer streaming service in the near future.
“The Teaching Company has continued its impressive financial performance despite a challenging macroeconomic environment, and this year is on track to more than triple its revenue and profitability since our original acquisition in 2006,” said Eric Reiter, a Partner at Brentwood. He continued, “The Company is led by an outstanding management team that continues to execute on several important strategic initiatives, including successfully implementing a digital distribution platform and exploring new distribution partnerships to reach more customers. This is a very exciting time for the Company as it looks to expand its premium-quality, highly-engaging educational content across a variety of new distribution channels.”
William Barnum, Jr., a Partner at Brentwood and co-founder of the firm’s private equity effort, added, “The Teaching Company, at its core, is dedicated to providing an exceptional and engaging experience to its large base of passionate and loyal customers. The Company achieves this by creating high quality courses taught by extraordinary professors and subject matter experts. Given the evolving media landscape, we believe The Teaching Company is very well positioned to continue on its aggressive growth path.”GE Capital continues to be the administrative agent on the existing credit facilities
Ares Capital Corporation provided the incremental financing in the form of a delayed draw term loan to support the recapitalization transaction. The Senior Secured Loan Program, jointly managed by Ares Capital Corporation and an affiliate of GE Capital, provides existing term loan financing for the Company. GE Capital continues to be the administrative agent on the existing credit facilities.
The Teaching Company
The Teaching Company is the nation’s leading developer and marketer of proprietary, premium-quality, university-level courses targeted at life-long learners. The Company markets its courses under “The Great Courses” brand (www.thegreatcourses.com) and currently offers more than 390 courses, which span more than 5,600 hours of content across ten subject categories: science and mathematics, history, fine arts and music, religion and theology, philosophy and intellectual history, literature and English language, business and economics, better living, professional and high school. Courses are available in several formats, including DVD, CD, and digital download. The Teaching Company was founded in 1990 by Thomas M. Rollins, and is based in Chantilly, Virginia.
Brentwood Associates is a consumer-focused private equity investment firm with over $650 million of capital under management and a thirty-year history of investing in leading middle-market growth companies. Brentwood focuses on investments in growing businesses where it is able to leverage its extensive experience in areas such as: branded consumer products; consumer services; direct marketing, including direct mail and e-commerce; education; health and wellness; restaurants; and specialty retail. Since 1984, Brentwood’s dedicated private equity team has invested in 40 portfolio companies with an aggregate transaction value of over $5 billion. With significant experience in both investing and brand building, Brentwood is a value-added partner with entrepreneurs and executives building world-class companies. For more information about Brentwood, please visit www.brentwood.com.
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. The program is co-managed by GE Commercial Finance Investment Advisory Services LLC and Ares Capital Corporation and transactions require approval by both managers. The SSLP has $7.7 billion of available capital and can hold up to $300 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.
Ares Capital Corporation
Ares Capital is a leading specialty finance company that provides one-stop financing solutions to U.S. middle market companies and private equity sponsors. The Company 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. Ares Management is a global alternative asset manager and a SEC-registered investment adviser with approximately $46 billion of committed capital under management as of December 31, 2011. For more information, visit www.arescapitalcorp.com.
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit www.gecapital.com or follow company news via Twitter (@GECapital). GE 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. For more information, visit ge.com.