The Senior Secured Loan Program (SSLP), jointly managed by an affiliate of Ares Capital Corporation and an affiliate of GE Capital, announced that its total available capital has increased from $7.7 billion to $9.0 billion. In connection with this expansion, GE Capital and an affiliate agreed to make available to the SSLP up to approximately $7.25 billion and Ares Capital agreed to make available to the SSLP up to approximately $1.75 billion.
“We are excited about this new expansion of the SSLP which reflects the wide acceptance of our product and its significant advantages in today’s competitive marketplace,” commented Kipp deVeer, a senior partner of the Ares Management LLC Private Debt Group.
“The SSLP continues to expand, allowing us to provide a compelling financing solution for private equity firms and management teams,” said Timothy Lyne, senior managing director of GE Antares Capital. “We look forward to using this additional capital to help our customers acquire and grow their businesses in 2013 and beyond.”
During the fourth quarter of 2012, SSLP closed eight financing commitments totaling approximately $1.3 billion, including four refinancing transactions of existing portfolio companies. In 2012, SSLP’s commitments totaled approximately $3.2 billion, including loans to 10 new portfolio companies and 13 existing portfolio companies. Since January 1, 2010, the SSLP has committed approximately $9.1 billion to middle-market borrowers.
Below is a brief description of three of the fourth quarter SSLP transactions.
Intermedix Corporation / Thomas H. Lee Partners
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $330 million senior secured term loan provided by SSLP to support the refinancing of Intermedix Corporation by Thomas H. Lee Partners. In addition, Ares Capital served as administrative agent in a $112 million second lien term loan and GE Capital, through its GE Antares Capital subsidiary, served as administrative agent for a $50 million senior secured revolving credit facility in connection with the transaction. Intermedix is a leading provider of technology-enabled solutions for the US healthcare and emergency response industries.
Power Holdings, LLC / Kelso & Company
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $208 million senior secured term loan provided by SSLP to support the acquisition of Power Holdings, LLC by Kelso & Co. Power Holdings is a leading super-regional provider of outsourced critical, scheduled and emergency maintenance services for power transmission, distribution and substation infrastructure to municipalities.
BECO Holding Company, Inc. / Freeman Spogli & Co.
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $176 million senior secured credit facility provided by SSLP to support the refinancing of BECO Holding Company, Inc., doing business as Brooks Equipment Company, a portfolio company of Freeman Spogli & Co. In addition, GE Capital, through its GE Antares Capital subsidiary, provided a $15 million senior secured revolving credit facility in support of the transaction. BECO Holding Company is the nation’s leading business-to-business wholesale distributor of first response fire protection equipment and related parts.
The Senior Secured Loan Program was formed in December 2007 to invest in the senior secured debt of middle-market companies. Its members are comprised of Ares Capital Corporation and GE Global Sponsor Finance LLC. The program is co-managed by GE Commercial Finance Investment Advisory Services LLC and Ares Capital Management LLC and transactions require approval by the individuals appointed by the members of the SSLP. The SSLP has $9 billion of available capital and can hold up to $300 million in a single transaction for borrowers across a wide range of industry sectors. The SSLP benefits borrowers by virtue of greater speed, simplicity and certainty, with proven partners.