Senior Secured Loan Program, which is managed by Ares Capital and an affiliate of GE Capital, increased the total available capital in the program to $5.1 billion from $3.6 billion. The amount of capital GE Capital and its affiliate will make available rose to $4.125 billion from $3.075 billion. The funds Ares Capital will make available rose to $975 million from $525 million. In addition, the program will now be allowed to hold loans in a principal amount up to $300 million.
Senior Secured Loan Program (“SSLP”), jointly managed by Ares Capital and an affiliate of GE Capital, announced today that its total available capital has increased from $3.6 billion to $5.1 billion. In connection with this expansion, the available capital provided by GE Capital and its affiliate to SSLP increased from $3.075 billion to $4.125 billion, and the available capital provided by Ares Capital increased from $525 million to $975 million. Additional changes to its program now permit SSLP to hold loans in a principal amount up to $300 million.
“We are very excited about the expansion of the SSLP, and the tremendous support and strong working partnership that we have developed with GE Capital”
“We are very excited about the expansion of the SSLP, and the tremendous support and strong working partnership that we have developed with GE Capital,” commented Kipp deVeer, Senior Partner at Ares Capital. “The increased size of the SSLP reflects the strong demand for large scale and flexible financing among sponsors and middle market borrowers in today’s marketplace.”
Stuart Aronson, President of GE Capital, Sponsor Finance, said, “We are pleased to provide additional capital to SSLP, and continue to have great acceptance from customers that put a premium on speed, simplicity, certainty and working with a proven partner.”
In 2010, SSLP completed thirteen investments totaling approximately $2 billion including loans to 11 new portfolio companies and two existing portfolio companies. As of year-end, total investments outstanding in SSLP were approximately $2.5 billion, net of repayments that occurred during the year.
During the fourth quarter of 2010, SSLP closed five new financing transactions totaling approximately $784 million, which included the following:
Press Ganey Associates / Vestar Capital Partners
GE Capital and Ares Capital Corporation served as joint lead arrangers and joint bookrunners for a $320 million senior secured term loan in support of Vestar Capital Partners’ recapitalization of Press Ganey Associates, a recognized leader of performance improvement solutions for health care organizations. Of the $320 million senior secured term loan provided to Press Ganey, the SSLP invested $270 million and Ares Capital and other investors provided $50 million. In addition, GE Capital, through its GE Antares subsidiary, provided a $30 million senior secured revolving credit facility in support of the transaction.
York Risk Services Group / ABRY Partners
GE Capital and Ares Capital Corporation served as joint lead arrangers and joint bookrunners for a $198 million senior secured term loan in support of ABRY Partners’ acquisition of York Risk Services Group, a premier national provider of claims-handling, specialized loss adjusting, and other risk management services. In addition, GE Capital, through its GE Antares subsidiary, provided a $25 million senior secured revolving credit facility in support of the transaction.
Cambridge International, Inc. / Sterling Investment Partners
GE Capital and Ares Capital Corporation served as joint lead arrangers and joint bookrunners for a $76 million senior secured term loan in support of Sterling Investment Partners’ recapitalization of Cambridge International, Inc., a leading manufacturer of metal conveyor belting, wire cloth products, and architectural mesh for a wide array of industries. In addition, GE Capital, through its GE Antares subsidiary, provided a $10 million senior secured revolving credit facility in support of the transaction.
United Central Industrial Supply / American Securities
GE Capital and Ares Capital Corporation served as joint lead arrangers and joint bookrunners for a senior secured term loan in support of American Securities’ recapitalization of United Central Industrial Supply, the largest mining supply distribution company in the United States and Canada. In addition, GE Capital, through its GE Antares subsidiary, provided a senior secured revolving credit facility in support of the transaction.
About Senior Secured Loan Program
Senior Secured Loan Program was formed in December 2007 with approximately $3.6 billion of available capital 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. SSLP now has $5.1 billion of available capital and can hold up to $300 million in a single transaction for borrowers across a wide range of industry sectors. Senior Secured Loan Program benefits borrowers by virtue of greater speed, simplicity and certainty, with proven partners.
About Ares Capital Corporation
Ares Capital (NASDAQ:ARCC) is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. With offices in Atlanta, Chicago, Los Angeles, New York and Washington, D.C., Ares Capital is a specialty finance company that provides integrated debt and equity financing solutions to U.S. middle market companies. Ares Capital invests primarily in first- and second-lien loans and mezzanine debt, which in some cases includes an equity component. To a lesser extent, Ares Capital also makes equity investments. Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management LLC, a global alternative asset manager and a Securities and Exchange Commission registered investment adviser. As of December 31, 2010, Ares Management LLC had approximately $39 billion of committed capital under management. For more information, visit www.arescapitalcorp.com.
About GE Capital
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 (NYSE: GE) is a diversified infrastructure, finance and media company that is taking on the world’s toughest challenges. From aircraft engines and power generation to financial services, health care solutions and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit www.ge.com.
About GE Antares Capital
GE Antares Capital is a unit of GE Capital, Sponsor Finance. With offices in Atlanta, Chicago, Los Angeles, New York and San Francisco, GE Antares is a leading lender to middle market private equity sponsors. GE Capital has ranked #1 in the U.S. Sponsored Middle Market Bookrunner League Tables for three of the past four years. For more information, visit www.geantares.com.
About Press Ganey Associates
Recognized as a leader in performance improvement for 25 years, Press Ganey partners with more than 10,000 health care organizations to create and sustain high performing organizations, and, ultimately, improve the overall health care experience. The company offers a comprehensive portfolio of solutions to help clients operate efficiently, improve quality, increase market share and optimize reimbursement. Press Ganey works with clients from across the continuum of care – hospitals, medical practices, home health agencies and other providers – including 50% of all U.S. hospitals. For more information, visit www.pressganey.com.
About Vestar Capital Partners
Vestar Capital Partners is a leading global private equity firm with more than 22 years of experience investing in middle-market companies with $7 billion in assets currently under management. From its headquarters in New York, and through its five offices in the U.S. and Europe, Vestar employs its value-oriented investment approach across a variety of industries in companies ranging in total enterprise value from $250 million to $3 billion and operations in five key industry sectors: consumer/services, diversified industries, healthcare, media/communication, and financial services. Vestar invests and collaborates with incumbent management teams, family owners or corporations in a creative, flexible and entrepreneurial way to build long-term franchise and enterprise value. Since 1988, Vestar has completed 66 investments in companies with total enterprise value of over $30 billion. Vestar has operations in New York, Boston, Denver, Milan, Munich and Paris. For more information, visit www.vestarcapital.com.
About York Risk Services Group
York Risk Services Group, Inc. is a premier provider of claims-handling, specialized loss adjusting, managed care, pool administration, loss control and other risk management and insurance services nationwide. York provides risk management and managed care solutions to a wide variety of strategic partners, including insurance carriers, self insureds, brokers, wholesalers, MGAs, programs, risk pools and public entities. York delivers customized claims solutions for all lines of business, including property, liability, products liability, ocean and inland marine, environmental, transportation and logistics, construction, and workers’ compensation. York is based in Parsippany, N.J., and has nearly 1,200 employees nationwide. Visit us on the Web at www.yorkrsg.com.
About ABRY Partners
Based in Boston, MA, ABRY Partners is one of the most experienced and successful private investment firms in North America focused solely on media, communications, business and information services investments. Since 1989, ABRY Partners has completed over $21 billion of leveraged transactions and other private equity and mezzanine investments, representing investments in approximately 450 properties. For more information, visit www.abry.com.
About Cambridge International, Inc.
With a heritage that dates back to 1911, Cambridge International is a leading wire fabricator, with a customer base that spans the world. The company’s products are used in a wide variety of applications and industries. Cambridge International is recognized for forging committed, long-lasting relationships with its customers. Known from its earliest years as a pioneer in engineering and manufacturing precision-fabricated metal products, today Cambridge International continues to develop innovative product solutions for customers across many different industries and applications. For more information, visit www.cambridge-intl.com.
About Sterling Investment Partners
Sterling Investment Partners invests in companies with significant competitive strengths and growth potential. Founded in 1991, Sterling has completed investments, strategic or add-on acquisitions, and liquidity events with an aggregate transaction value in excess of $8.0 billion, representing more than 80 transactions. Sterling maintains a broad industry focus, including professional and business services, niche manufacturing, transportation and logistics, retail/consumer and technology-related businesses. For more information, visit www.sterlinglp.com.
About United Central Industrial Supply
United Central, headquartered in Bristol, Virginia, is a distributor of mining supplies and services to North America’s underground mining supply market. UCIS was founded as a captive supplier to United Coal in 1974 and grew through a series of acquisitions until it was eventually spun out of United Coal in 1999. The Company has served leading coal producers for more than 35 years and services over 400 underground coal mines. For more information, visit www.unitedcentral.net.
About American Securities
Headquartered in New York with an office in Shanghai, American Securities LLC is a U.S. private equity firm that invests in market-leading companies in North America with annual revenues generally ranging between $100 million to $1 billion. Investments are funded from more than $6 billion of committed capital. The firm traces its roots to the family office founded in 1947 by William Rosenwald to invest and manage his share of his family’s Sears, Roebuck & Co. fortune. For more information, visit www.american-securities.com.