$1.2 Billion in New Investment Commitments Closed in the Fourth Quarter
NEW YORK — February 27, 2017 — Ares Capital Corporation (NASDAQ: ARCC) is providing additional details on its new financing commitments closed during the fourth quarter, which totaled approximately $1.2 billion.
“In the fourth quarter, we leveraged the breadth of our platform to originate $1.2 billion of commitments across 24 transactions in a variety of industries,” said Kipp deVeer, Chief Executive Officer of Ares Capital. “Having over 80% of our investment activity in the quarter in support of our existing borrowers is a testament to the significant advantages we provide to our borrowers.”
Below is a description of eight transactions that closed during the fourth quarter.
Acrisure / ABRY Partners
Ares Capital served as administrative agent for a $305.0 million second lien credit facility to support the management-led buyout of Acrisure. Ares Capital also made a co-investment in an ABRY Partners-led preferred stock investment in connection with the transaction. Based in Grand Rapids, Michigan, Acrisure is a leading retail insurance brokerage offering comprehensive risk management and consulting solutions, including property and casualty, employee benefits, human resource outsourcing, loss and claims management, surety bonding and personal lines coverage.
Riverview Power LLC / Castleton Commodities International LLC
Ares Capital served as administrative agent for a $250.0 million senior secured credit facility to support a dividend recapitalization of Riverview Power LLC, a 1,559-MW natural gas-fired and landfill gas power portfolio located throughout NYISO, PJM and ERCOT.
National Seating & Mobility / Court Square Capital Partners
Ares Capital served as administrative agent, lead arranger and bookrunner for a $176.2 million senior secured credit facility to support the acquisition of National Seating & Mobility (NSM) by Court Square Capital Partners. Founded in 1992, and headquartered in Franklin, Tennessee, NSM has grown into North America’s premier Complex Rehab Technology provider. NSM designs and assembles customized wheelchairs and adaptive seating systems that play an essential role in improving the lives of patients by enhancing their functionality, maximizing their independence and providing an ability to participate in the community.
Varsity Brands / Charlesbank Capital Partners
Ares Capital served as second lien administrative agent and collateral agent for a $75.0 million incremental second lien term loan to support a dividend recapitalization of Varsity Brands, a Charlesbank Capital Partners portfolio company. With a mission to inspire achievement and create memorable experiences for young people, Varsity Brands elevates the student experience, promotes participation, and celebrates achievement through three unique businesses: Herff Jones, BSN SPORTS, and Varsity Spirit. Together, these assets promote personal, school, and community pride through customizable products and programs to elementary and middle schools, high schools, and colleges and universities, as well as church organizations, professional and collegiate sports teams, and corporations.
Crown Laundry / Quilvest Private Equity
Ares Capital served as administrative agent and collateral agent for a $17.8 million upsize to Crown Laundry’s senior secured credit facility to support the buildout of a new plant in Bishopville, South Carolina. Crown Laundry is an independent full-service healthcare laundry processor and linen rental company serving healthcare providers in the southeastern United States.
Broad River Energy / Arroyo Energy Investment Partners
Ares Capital served as administrative agent for a holdco bridge loan in connection with the acquisition of the Broad River Energy Center by affiliates of Arroyo Energy Investors. Broad River is a 850-MW dual-fuel, simple-cycle generating facility located in Cherokee County, South Carolina that is fully committed to Duke Energy Progress under two long-term tolling agreements.
Young Innovations / Linden Capital Partners
Ares Capital served as administrative agent for an incremental second lien term loan to support the recapitalization of Young Innovations, a Linden Capital Partners portfolio company. Young Innovations develops, manufactures and markets supplies and equipment used by dentists, dental hygienists, dental assistants and consumers.
Zywave / Aurora Capital Group
Ares Capital served as the administrative agent, collateral agent, sole lead arranger and sole bookrunner for a senior secured credit facility to support a financing of Zywave, an Aurora Capital Group portfolio company. Zywave is the leading provider of technology-enabled content and analytical solutions on a software as a service (SaaS) basis that drive improved performance in sales, marketing and customer retention for P&C and benefits insurance brokerages. Zywave’s products deliver demonstrable value to its customers, leading to more initial prospect meetings, better close rates, and shortened selling cycles in the competitive independent brokerage market. Zywave's complementary product portfolio includes tools related to marketing communications, data analytics, employer resources and benefits agency management, among others.
About Ares Capital Corporation
Ares Capital is a leading specialty finance company that provides one-stop debt and equity financing solutions to U.S. middle market companies, venture capital backed businesses and power generation projects. Ares Capital originates and invests in senior secured loans, mezzanine debt and, to a lesser extent, equity investments through its national direct origination platform. Ares Capital’s investment objective is to generate both current income and capital appreciation through debt and equity investments primarily in private companies. Ares Capital has elected to be regulated as a business development company (“BDC”) and as of December 31, 2016, was the largest BDC by total assets and market capitalization. Ares Capital is externally managed by a subsidiary of Ares Management, L.P. (NYSE:ARES), a publicly traded, leading global alternative asset manager. For more information about Ares Capital, visit www.arescapitalcorp.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.
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