Franklin Square Capital Partners has provided unitranche financing to support the dividend recapitalization of car reconditioning company Dent Wizard International Corp. No financial terms were disclosed. Based in Bridgeton, Missouri, Dent Wizard is owned by H.I.G. Capital.
PHILADELPHIA, PA, February 6, 2015 – Franklin Square Capital Partners (Franklin Square), the largest manager of business development companies (BDCs), announced the origination of a unitranche term loan to finance a dividend recapitalization of Dent Wizard International Corp. (Dent Wizard), the largest vehicle reconditioning servicer in the U.S. and Canada. Dent Wizard is a portfolio company of H.I.G. Capital (H.I.G.), a leading global private equity investment firm with more than $17 billion of capital under management as of December 31, 2014.
The unitranche financing was provided by FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II (FSIC II) and FS Investment Corporation III (FSIC III), BDCs managed by Franklin Square and sub-advised by an affiliate of GSO Capital Partners (GSO), the credit platform of Blackstone (NYSE: BX). FSIC, FSIC II and FSIC III focus primarily on investing in the debt securities of private U.S. middle market companies.
“We are pleased to have the opportunity to make this commitment to Dent Wizard and to work again with H.I.G. on this new direct origination,” said Michael C. Forman, Chairman and Chief Executive Officer of FSIC, FSIC II and FSIC III. “The scale of our platform gives us the ability to provide customized financing solutions to our clients and to support our portfolio companies as they develop and grow their businesses.”
“Since the initial financing in April 2013, Dent Wizard has grown its market share, deleveraged its balance sheet and demonstrated a consistent ability to generate free cash flow,” commented Brad Marshall, Senior Managing Director at GSO. “We believe Dent Wizard’s leading management team and diverse line of products has the company well-positioned to further cement its position as a market and category leader in automotive reconditioning services.”
“Consistent with our prior experience, GSO and Franklin Square again delivered a timely financing solution tailored to meet our needs,” said Fraser Preston, Managing Director of H.I.G. “This commitment is a vote of confidence in Dent Wizard’s market position and positions the company to continue to pursue its numerous service and channel growth initiatives. We appreciate Franklin Square’s continued commitment to our company.”
About Dent Wizard
Founded in 1983 and headquartered in Bridgeton, MO, Dent Wizard is the nation’s largest provider of automotive reconditioning services. With over 1,300 technicians servicing over 5,000 customers, Dent Wizard offers a range of cosmetic reconditioning services for vehicles, such as removing dents, dings, creases and hail and catastrophe damage from vehicles without affecting the original factory finish. Dent Wizard also provides bumper, scratch, wheel, leather and vinyl, and carpet and fabric repair services. Dent Wizard services car dealerships, domestic and imported automobile manufacturers, auto auctions, body shops and collision centers, rental car agencies, insurance companies, fleet owners and operators and individual vehicle owners.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with more than $17 billion of equity capital under management (based on total capital commitments to funds managed by H.I.G. Capital and its affiliates). Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris and Rio de Janeiro, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
1) H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
2) H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as on the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
3) Other H.I.G. funds invest in various real assets, including real estate and shipping.
Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes more than 80 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
FSIC is a publicly traded BDC focused on providing customized credit solutions to private middle market U.S. companies. FSIC seeks to invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market companies to achieve the best risk-adjusted returns for its investors. In connection with its debt investments, FSIC may receive equity interests such as warrants or options.
FSIC is advised by FB Income Advisor, LLC, an affiliate of Franklin Square, and is sub-advised by GSO / Blackstone Debt Funds Management LLC (GDFM), an affiliate of GSO. GSO, with approximately $72.9 billion in assets under management as of December 31, 2014, is the credit platform of Blackstone, one of the world’s leading managers of alternative investments. For more information, please visit www.fsinvestmentcorp.com.
About FSIC II and FSIC III
FSIC II and FSIC III are publicly registered, non-traded BDCs sponsored by Franklin Square. FSIC II and FSIC III focus primarily on investing in the debt securities of private companies throughout the United States, with the investment objectives of generating current income and, to a lesser extent, long-term capital appreciation for their investors. FSIC II and FSIC III are advised by affiliates of Franklin Square and are sub-advised by GDFM. For more information, please visit www.franklinsquare.com.
About Franklin Square
Franklin Square is a leading manager of alternative investment funds designed to enhance investors’ portfolios by providing access to asset classes, strategies and asset managers that typically have been available to only the largest institutional investors. The firm’s funds offer “endowment-style” investment strategies that help construct diversified portfolios and manage risk. Franklin Square strives not only to maximize investment returns but also to set the industry standard for best practices by focusing on transparency, investor protection and education for investment professionals and their clients.
Founded in Philadelphia in 2007, Franklin Square quickly established itself as a leader in the world of alternative investments by introducing innovative credit-based income funds, including the industry’s first non-traded BDC. The firm managed approximately $13.6 billion in assets as of September 30, 2014. For more information, please visit www.franklinsquare.com.
About Blackstone and GSO
Blackstone is one of the world’s leading investment firms. It seeks to create positive economic impact and long-term value for investors, the companies it invests in, and the communities in which it works. Blackstone does this by using extraordinary people and flexible capital to help companies solve problems. Blackstone’s asset management business, with almost $300 billion in assets under management, includes investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. GSO, a division of Blackstone, is a leading credit-focused alternative asset manager, with approximately $72.9 billion of assets under management as of December 31, 2014. GSO has a global footprint with approximately 250 professionals among its offices in New York, Dublin, London and Houston. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.