Kayne Anderson Middle Market Credit, the private credit platform of Kayne Anderson Capital Advisors, along with Comvest Partners provided a $24 million term loan to SCG Financial Acquisition Corp. The loan will fund the business combination of Reach Media Group Holdings and Symon Communications Holdings Corp.
Kayne Anderson Middle Market Credit, the private credit platform of Kayne Anderson Capital Advisors, L.P. (“Kayne” or “Kayne Anderson”), and Comvest Partners provided a $24,000,000 term loan to SCG Financial Acquisition Corp. (d/b/a “RMG Networks”) (NasdaqCM: RMGN) to fund the business combination of Reach Media Group Holdings, Inc. (“RMG”), a leading digital signage media and technology company, and Symon Communications Holdings Corporation (“Symon”), a leading global provider of enterprise-class digital signage solutions.
The deal was led and agented by one of Kayne’s middle market lending funds, Kayne Senior Credit Fund, L.P. Comvest Partners, through its fund Comvest Capital II L.P., provided $8,000,000 of the $24,000,000 term loan.
The combination of RMG and Symon creates a leading digital signage media company that offers intelligent visual technology solutions to enterprise customers and leadership in digital place-based media to advertisers. RMG Networks now has over 7,500 customers including approximately 70% of the Fortune 100, a majority of the Fortune 500, and over 1 million installed screens.
Gregory Sachs, Executive Chairman of RMG Networks said, “I am very excited about this new business combination. Our goal is to become a premier platform for providing customers and partners intelligent visual communications solutions and we will move swiftly to capture opportunities in this highly fragmented space. I believe we have the right lenders to help execute this strategy, as demonstrated in their hard work to help us get the transaction done quickly and efficiently.”
Ken Leonard, Managing Partner, Kayne Senior Credit Fund, L.P. said, “The transaction represented a unique opportunity to finance two industry leading companies with niche focuses in defensible markets. We are delighted to have closed the transaction and look forward to working with the company in meeting future growth needs.”
Dan Lee, Managing Director, Comvest Partners, said, “We were impressed by both RMG and Symon, and particularly by the quality of their management teams. This was an opportunity to support Mr. Sachs and Kayne Anderson, who we have known for years and think very highly of. We look forward to supporting the business with additional capital and building a very productive relationship with Kayne Anderson over the years.”
About RMG Networks:
RMG Networks is a leading provider of complete digital signage solutions. Its RMG Media Networks business unit engages elusive audience segments with relevant content and advertising delivered through digital place-based networks, including the largest digital airline media network with a monthly audience of more than 35 million passengers and a mall media network reaching over 62 million monthly viewers in 161 shopping malls across the United States. Its RMG Enterprise Solutions business unit provides digital signage hardware, software and services to power state-of-the-art visual communication implementations for critical contact center, supply chain, employee communications, hospitality, retail and other applications. The company is based in Plano, TX and operates offices in major cities throughout the United States and in the United Kingdom, China, India and the U.A.E. Its securities are traded on the NASDAQ Capital Market (RMGN) and the OTC Bulletin Board (SCGQU and SCGQW). For more information visit www.rmgnetworks.com.
Comvest Partners, with $1.1 billion of assets under management, provides flexible financing solutions to lower middle-market companies through its equity and debt funds, often meeting time-critical and complex funding requirements. Our firm includes seasoned, senior level operating executives who partner with managers and owners of companies to operationally improve businesses and create long-term value. Since 2000, Comvest has invested more than $1.7 billion of capital in over 115 public and private companies. Please visit www.comvest.com.
About Kayne Middle Market Credit:
Kayne Anderson Middle Market Credit, with offices in New York, Houston, and Los Angeles, is a private debt platform focused exclusively on meeting the financing needs of middle market companies. With $9551 million of capital raised, Kayne Anderson Middle Market Credit provides complete capital solutions, including senior secured bank debt, junior secured debt, unitranche debt, mezzanine debt and preferred and common equity to companies in a variety of different industries predominantly across North America. Kayne Anderson Middle Market Credit is a part of Kayne Anderson Capital Advisors, L.P. (“Kayne Anderson”) a leading alternative investment management firm with $21 billion in assets under management (as of 4/30/13) and nearly 30 years of successful investing experience. Kayne Anderson focuses on niche investing in middle market credit, energy and energy infrastructure, real estate, growth equity, and municipal opportunities. For more information, please visit www.kaynecapital.com.
1 Includes total commitments raised for Kayne Anderson Mezzanine Partners (“KAMP”) and Kayne Senior Credit Fund (“KSCF”), targeted capital for Kayne Credit Opportunity Fund, L.P. (“KCOF”) and strategic relationships and separately managed accounts in the strategy.