New Start Metals Receives $18 Mln from Prospect Capital

Prospect Capital Corp. said Tuesday that it has provided $18 million in financing to New Start Metals, a portfolio company of Insight Equity Holdings. According to Prospect, the funding is to support Insight Equity’s purchase of Canfield Metal Coating Corp. as well as help partially recapitalize NSM. The Chicago area-based NSM is a provider of steel processing, building products and supply chain management services. Canfield Metal Coating Corp. is a a coil coating company in Canfield, Ohio.


NEW YORK, NY–(Marketwired – Jul 9, 2013) – Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) announced today that Prospect served as sole agent and provider of $18.0 million of incremental floating-rate second lien secured debt to New Star Metals (“NSM”), a portfolio company of investment funds managed by Insight Equity Holdings LLC (“Insight Equity”), to support the acquisition of Canfield Metal Coating Corporation (“CMC”) and a partial recapitalization of NSM.
Based in the Chicago area, NSM provides steel processing, building products, and supply chain management services across a diverse array of end markets. NSM operates through its four divisions, including Electric Coating Technologies, Premier Resource Group, World Class Corrugating, and Canfield Coating.
“Prospect played a critical role in the transaction by providing additional debt capital to New Star as an already existing lender to the company,” said Jack Waterstreet, a Principal of Insight Equity. “Once again, Prospect was responsive to the company’s financing needs with a customized and value-added financing solution.”
“Prospect is pleased to provide acquisition financing to the company to enable Insight Equity and the company to execute on their strategic initiatives,” said David Moszer, a Managing Director of Prospect Capital Management LLC. “Prospect regularly provides follow-on financing solutions to facilitate tuck-in acquisition financing for our private equity owned portfolio companies.”
Prospect has closed more than $1.5 billion of originations to date in the current 2013 calendar year, including nearly $800 million in originations in the June 2013 quarter. Prospect closed more than $3.0 billion of originations in the twelve months ended June 30, 2013.
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