U.S.-based private debt and equity firm Prospect Capital Corp. has provided a US$150 million senior secured term loan in support of the recapitalization of Arctic Glacier Inc., a producer, marketer, and distributor of high-quality packaged ice to consumers. The recapitalization is intended to help the company to pursue acquisitions and organic growth initiatives. The Winnipeg, Manitoba-based Arctic Glacier was bought out of bankruptcy by private equity firm HIG Capital for $449 million in 2012.
Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”) announced today that Prospect has provided a $150 million senior secured term loan to support the recapitalization of Arctic Glacier, Inc. (“Arctic Glacier”), a leading producer, marketer, and distributor of high-quality packaged ice to consumers in the United States and Canada.
Controlled by H.I.G Capital, LLC (“H.I.G.”), Arctic Glacier is the largest producer of packaged ice in Canada and the second largest producer of packaged ice in the United States, primarily under the brand name of Arctic Glacier® Premium Ice. Arctic Glacier operates 39 production plants and 47 distribution facilities across Canada and the northeast, central and western United States, servicing more than 75,000 retail locations.
“Prospect’s responsiveness and large balance sheet provided Arctic with certainty of execution around the entire $150 million senior secured second lien tranche, allowing us to reduce market risk and thereby providing us with an attractive alternative to the syndicated capital markets for this portion of the capital structure,” said Bret Wiener, a Managing Director of H.I.G.
“Prospect is pleased to provide 100% of the senior secured second lien capital in support of Arctic’s recapitalization, further positioning the company to pursue accretive acquisitions and attractive organic growth initiatives,” said Jason Wilson, a Managing Director of Prospect Capital Management LLC. “This is another demonstrated example of Prospect’s ability to lead significant-sized transactions for middle-market and larger companies, thereby competing effectively with syndicated debt markets and providing more debt capital options for companies as they grow and mature over time.”
Prospect has closed more than $1.1 billion of originations to date in the current 2013 calendar year. Prospect closed nearly $3 billion of originations in the twelve months ended March 31, 2013.
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com) is a closed-end investment company that lends to and invests in private and microcap public businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
We have elected to be treated as a business development company under the Investment Company Act of 1940 (“1940 Act”). We are required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. Failure to comply with any of the laws and regulations that apply to us could have an adverse effect on us and our shareholders.
ABOUT H.I.G. CAPITAL
H.I.G. is a leading global private equity investment firm with more than $12 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York, and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Paris, and Rio de Janeiro, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding in 1993, H.I.G. invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes more than 70 companies. For more information, please refer to the H.I.G. website at www.higcapital.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.
Source: Prospect Capital Corporation
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