Ares Capital Corporation is providing additional details on its new financing commitments closed during the third quarter, which totaled approximately $1.5 billion. In addition to the over $200 million committed to the Senior Direct Lending Program, Ares Capital committed approximately $1.3 billion across 27 transactions.
“Our third quarter transaction activity was supported by a number of scaled financing solutions to high-quality companies, including our role in leading the $1 billion unitranche financing for Qlik Technologies,” said Kipp deVeer, Chief Executive Officer of Ares Capital. “This quarter’s activity demonstrates how we are able to drive selectivity, aggregate high-quality assets, maintain a diverse portfolio and generate meaningful fee income.”
Below is a description of 12 transactions that closed during the third quarter.
Qlik / Thoma Bravo
Ares Capital served as administrative agent, collateral agent, joint lead arranger and joint bookrunner for a $1.0 billion term loan to support the acquisition of Qlik by Thoma Bravo. Ares Capital also made an $8.0 million equity co-investment in connection with the transaction. Qlik is a leader in visual analytics. Its portfolio of products meets customers’ growing needs from reporting and self-service visual analysis to guided, embedded and custom analytics. Approximately 41,000 customers rely on Qlik solutions to gain meaning out of information from varied sources, exploring the hidden relationships within data that lead to insights that ignite good ideas.
OTG Management
Ares Capital served as administrative agent and collateral agent for a $460.0 million senior secured credit facility to support a refinancing of OTG Management. Ares Capital also made a $50.0 million investment in mezzanine and preferred equity securities led by Harvest Partners SCF, LP. Since 1996, OTG has been redefining the guest experience in airports, transforming the way passengers interact with the terminal. The company is currently one of the leading airport food and beverage operators in North America with more than 300 restaurant and retail locations across 11 airports.
Great Expressions / Roark Capital Group
Ares Capital served as administrative agent, joint lead arranger and joint bookrunner for a $410.0 million senior secured credit facility to support Roark Capital Group’s acquisition of Great Expressions Dental Centers. For nearly 40 years, Great Expressions has been a leader in preventative dental care, orthodontics and specialty care with affiliated offices in Connecticut, Florida, Georgia, Massachusetts, Michigan, New Jersey, New York, Ohio, Texas and Virginia. Great Expressions is consistently recognized for its contributions to improving oral health through quality and safety initiatives, affordable dental care services, patient convenience, research and more.
PureStar / Alvarez & Marsal Capital Partners
Ares Capital served as administrative agent, revolver agent, joint lead arranger and joint bookrunner for a $202.3 million senior secured credit facility to support the acquisition of United Laundry Services by PureStar, an existing Alvarez & Marsal Capital Partners portfolio company. United Laundry Services is the largest hospitality-focused, outsourced commercial laundry services provider in Hawaii. PureStar is the holding company for four leading commercial laundry businesses focusing on the hospitality sector. Operating under the Brady Linen, United Laundry, AC Linen and Royal Hospitality Services trade names, PureStar operates facilities across North America, including leading market positions in Las Vegas, Honolulu, Boston, Philadelphia, New Jersey, Connecticut, the Bahamas and Cancun, Mexico.
NSM Insurance Group / ABRY Partners
Ares Capital served as administrative agent for a $160.0 million senior secured credit facility to support the acquisition of NSM Insurance Group by ABRY Partners. For more than 26 years, NSM Insurance Group has been an industry leader in the development, implementation, marketing and underwriting of industry-specific insurance programs and has grown to over $500 million in annual premiums. The company's insurance programs include social services and behavioral health, CAT driven property, collector cars, workers' compensation, aviation, sports and fitness, microbreweries, and professional liability for lawyers, dentists, architects and engineers.
Badger Sportswear / CCMP Capital Advisors
Ares Capital served as administrative agent, sole lead arranger, and sole bookrunner for a $75.0 million second lien term loan to support the acquisition of Badger Sportswear by CCMP Capital Advisors. Badger Sportswear is a leading provider of team uniforms and performance athletic wear, including performance t-shirts, fleeces, shorts, pants and outerwear, worn by youth and adult athletes, team fans and supporters, and corporate employees, among other individuals. Badger has combined industry-leading product innovation and quality with best-in-class order execution and service to become the trusted supplier to team dealers, decorators, and wholesalers throughout the U.S. The company also sells its products through a growing number of collegiate bookstores and sporting goods retailers.
Industrial Container Services / Aurora Capital Group
Ares Capital served as administrative agent for a $37.5 million incremental first lien term loan to support the acquisition of Meyer Steel Drum by Industrial Container Services (ICS), an existing Aurora Capital Group portfolio company. Meyer Steel Drum, based in Chicago, IL, reconditions and manufactures steel drums and parts for the greater Chicago area. ICS is the largest provider of reusable container solutions in North America, operating 49 strategically located facilities across the United States and Canada. ICS services local, regional and national customers alike, striving to be the supplier of choice for high-quality, environmentally-responsible container solutions.
Pyramid Hotel Group / TZP Group
Ares Capital served as collateral agent, lead arranger, and lead bookrunner for a $64.0 million senior secured credit facility to support the acquisition of Pyramid Hotel Group by TZP Group. Ares Capital also made a $1.0 million equity co-investment in connection with the transaction. Pyramid Hotel Group is a privately-held, Boston-based hotel company that provides hotel management, resort management, asset management, and project management services to a broad array of hotel assets.
American Residential Services / Charlesbank Capital Partners
Ares Capital served as administrative agent and sole lead arranger for a $20.0 million incremental second lien term loan to support a refinancing of American Residential Services (ARS), an existing Charlesbank Capital Partners portfolio company. ARS provides air conditioning, heating, indoor air quality, plumbing, drain cleaning and sewer line services across the United States. ARS operates a network for 69 company-operated, locally managed service locations spanning 22 states. United by exceptional service, the ARS network serves both residential and light commercial customers through a knowledgeable team of trained specialists.
Accruent / Genstar Capital
Ares Capital served as joint lead arranger, joint bookrunner and administrative agent for an incremental senior secured credit facility to support the acquisition of Verisae, Inc. (Verisae) by Accruent, an existing Genstar Capital portfolio company. Verisae is a leading provider of SaaS solutions that connect the maintenance and service network globally to manage asset and equipment maintenance, energy usage, mobile workforces, environmental sustainability, and compliance for companies in the utilities, telecommunications, retail, manufacturing and service management industries. Accruent helps real estate and facilities leaders deliver long-term, world-class operational and financial performance through industry-specific suites that deliver greater customer value.
Hygiena / Warburg Pincus
Ares Capital served as administrative agent and joint bookrunner for a senior secured credit facility to support the acquisition of Hygiena by Warburg Pincus. Hygiena is a microbiology and life science company that serves industrial food processors, healthcare institutions, life science researchers and the general public. Hygiena manufactures and sells a broad range of rapid hygiene monitoring systems, environmental collection systems and rapid dilution devices. Hygiena is committed to the mission of providing customers with innovative technologies that are simple, easy-to-use and reliable, with excellent customer service and support.
Island Medical Management / New Mountain Capital
Ares Capital served as administrative agent, collateral agent, joint lead arranger and joint bookrunner for a senior secured credit facility to support the growth capital investment in Island Medical Management (IMM) by New Mountain Capital. Island Medical Management is a clinically-led, privately-held organization with over 20 years of management experience. IMM’s unique model offers every advantage of a local community based group, backed by the resources of a national organization. The group currently provides services to over 75 hospital programs throughout the United States, with more than 1.6 million patient encounters each year.
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 September 30, 2016, was the largest BDC by total assets and market capitalization.