Hanley Wood, a business-to-business media company serving the housing and commercial design and construction industries, has completed a recapitalization that will reduce its long-term debt from $410 million to $80 million. Hanley Wood’s new ownership group, led by certain funds managed by Oaktree Capital Management, Strategic Value Partners, and Tennenbaum Capital Partners, has invested $35 million in new capital into the company.
Hanley Wood LLC, the leading business-to-business media company serving the housing and commercial design and construction industries, announced today that it has completed a recapitalization that will reduce its long-term debt from approximately $410 million to $80 million. Also as part of this transaction, Hanley Wood’s new ownership group — led by certain funds managed by Oaktree Capital Management, L.P., Strategic Value Partners, LLC, and Tennenbaum Capital Partners, LLC — has invested $35 million in new capital into the company.
“This recapitalization is very positive news for the company, our customers, suppliers, business partners and employees,” said Frank Anton, Chief Executive Officer of Hanley Wood. “With a strengthened balance sheet, we expect to be much better positioned to invest in and grow our businesses and take full advantage of the strength of our operations.”
Andrew Salter, Senior Vice President at Oaktree Capital Management, L.P., said, “We believe Hanley Wood is one of the premier companies in the business-to-business media sector. With a healthy balance sheet and new investment capital, we believe the company is poised to rebound and grow as the construction markets improve.”
“We have outstanding, hard-working employees and a strong management team, all of whom are committed to the long-term success of the company,” Mr. Anton said. “I am confident that we can grow all segments of this business, including print, digital media, exhibitions, data and custom marketing. I look forward to working with Oaktree, SVP, Tennenbaum and other members of the new ownership group to achieve that goal.”
Houlihan Lokey acted as financial advisor for the company, and Latham & Watkins LLP served as the company’s legal counsel. Skadden, Arps, Slate, Meagher & Flom LLP provided counsel to the new ownership group.
About Hanley Wood
Hanley Wood, LLC, is the premier media and information company serving the housing and commercial design and construction industries. Through its operating platforms, the company produces award-winning magazines and Web sites, marquee trade shows and events, market intelligence data and custom marketing solutions. The company also is North America’s leading publisher of home plans.
About Oaktree Capital Management, L.P.
Oaktree is a leading global investment management firm focused on alternative markets, with $73 billion in assets under management as of September 30, 2011. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Oaktree was founded in 1995 by a group of principals who have worked together since the mid-1980s. Headquartered in Los Angeles, the firm has over 600 employees and offices in 13 cities worldwide.
About Strategic Value Partners, LLC
Strategic Value Partners, LLC (“SVP”) was founded in 2001 by Victor Khosla. With approximately $4 billion in assets under management, SVP is a leading global investment firm with primary offices in Greenwich (CT), London, Frankfurt, and Tokyo focused on distressed, event driven and turnaround investments. SVP seeks to create value through its substantial industry, restructuring and operating expertise.
About Tennenbaum Capital Partners, LLC
Tennenbaum Capital Partners(TM) (“TCP”) is a Los Angeles-based, multi-strategy alternative investment management firm focused primarily on special situation credit investments through its Opportunity Funds(TM), in addition to investments by specialty funds focused on debtor-in-possession and public market strategies. TCP finds opportunity primarily in middle-market credit, where the firm can play a meaningful role in each situation. The firm’s investment professionals use their extensive expertise in legal, operational and financial disciplines to successfully execute TCP’s investment strategies. Since its founding, TCP has invested approximately $10 billion in about 200 companies.