With $100M Dividend, Irving Place to Make Back About 60% of Thermadyne Investment

Today, we have another dividend deal.

Thermadyne is issuing $100 million in add-on notes to an existing $260 million loan, according to a March 1 Standard & Poor’s report. The company will use the proceeds to “return a similar amount of capital,” or $100 million, to its sponsors, S&P says.

That is good news for Irving Place Capital. The PE firm acquired the St. Louis-based welding equipment maker in December of 2010. The deal was valued at $422 million.

Irving Place Capital contributed about $170 million equity in the deal, according to a Bloomberg report from that time. An SEC filing dated April 5 says Thermadyne received $176 million in equity contributions.

Either way, Irving Place has made back about 60% of its investment in less than 1.5 years. Thermadyne’s business risk profile is “weak” and its financial risk profile is “highly leveraged,” S&P said. Thermadyne, which sells cutting and welding products, produces annual revenue of about $485 million. Thermadyne’s total leverage is expected to be roughly 5x, including the remaining preferred stock, Moody’s Investors Service said.

Officials for Irving and Thermadyne couldn’t be reached for comment.