The Senior Secured Loan Program, jointly managed by Ares Capital Corporation and an affiliate of GE Capital, has closed a $130 million senior secured term loan to support the acquisition of PetroChoice by Greenbriar Equity Group. PetroChoice, headquartered in Riddlesburg, is a distributor of consumable commercial, industrial and passenger vehicle lubricants in the Mid-Atlantic and Upper Midwest regions of the United States.
The Senior Secured Loan Program (SSLP), jointly managed by Ares Capital Corporation and an affiliate of GE Capital, announced today the closing of a $130 million senior secured term loan to support the acquisition of PetroChoice by Greenbriar Equity Group LLC. PetroChoice, headquartered in Riddlesburg, Pa., is the largest distributor of consumable commercial, industrial and passenger vehicle lubricants in the Mid-Atlantic and Upper Midwest regions of the United States.
GE Capital Markets and Ares Capital served as joint arrangers and joint bookrunners in the senior secured term loan provided by the SSLP. In addition, GE Capital, through its GE Antares Capital subsidiary, provided a $15 million senior secured revolving credit facility in support of the transaction.
“The Senior Secured Loan Program provided us with an efficient, timely and reliable financing solution,” said Jill Raker, Managing Director at Greenbriar. “This client-focused source of capital allowed us to move quickly to closing.”
“We’re thrilled to work with Greenbriar and PetroChoice on this transaction,” said Doug Cannaliato, Managing Director at GE Antares Capital. “As a market leader, PetroChoice has generated substantial growth over the past few years and is well positioned to continue growing with Greenbriar as a sponsor.”
“This has been another exciting opportunity for us to support Greenbriar, one of our valued sponsor relationships,” said Eric Beckman, Senior Partner in the Private Debt Group of Ares Management LLC. “We look forward to supporting the PetroChoice management team with the company’s ongoing expansion.”
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. 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.
About 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 .
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 GE +0.05% 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
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 Markets has ranked #1 in the U.S. Sponsored Middle Market Bookrunner League Tables for three of the past four years.
Headquartered in Riddlesburg, Pennsylvania, PetroChoice is the largest distributor of consumable commercial, industrial, and passenger vehicle lubricants in the Mid-Atlantic and Upper Midwest regions of the United States. It serves a diverse set of customers across a range of industries including original equipment manufacturing, off-highway construction, surface mining, energy, metal working, food processing and passenger automotive, providing its customers with total fluids management for their lubricant needs. The Company distributes an extensive line of bulk products and a full range of packaged lubricants. In addition, PetroChoice offers its customers value-added services including customer on-site tank systems, in-plant and off-loading filtration, application engineering expertise, coolant program expertise and expert oil analysis. PetroChoice is actively pursuing organic growth opportunities as well as acquisitions with a focus on partnering with best-in-class lubricant distributors to expand its geographic footprint and service offerings to its customers.
About Greenbriar Equity Group LLC
Greenbriar Equity Group LLC, a private equity firm with $1.5 billion of committed capital, focuses exclusively on the global transportation industry and transportation related manufacturing, including companies in freight and passenger transport, aerospace and defense, automotive, logistics and distribution, and related sectors. Greenbriar invests with proven management teams who are interested in being significant equity owners in their companies as well as with corporate partners who are interested in raising capital. Greenbriar’s partners bring many decades of experience at the highest levels within the transportation industry.
SOURCE: Ares Capital Corporation