Babson Capital Management provided a combination of senior debt and subordinated debt and equity to support River Capital’s purchase of Blue Wave Products Inc.

Babson Capital served as the sole provider of senior and subordinated debt on the transaction.

Saint Charles, Ill.-based Blue Wave is a leading niche distributor of above-ground swimming pools, pool accessories and other products to internet dealers and the internet channels of large national retailers. Blue Wave serves as a one-stop shop offering more than 6,000 wholesale recreational products including pools, automatic cleaners, steps and ladders, winter products, games and saunas.

“As a reliable partner on eight portfolio investments spanning more than 25 years, Babson Capital consistently provides River Capital with a combination of experience and service that is difficult to match,” said Jerry Wethington, managing principal of River Capital. “River Capital looks forward to working with the Babson Capital team on Blue Wave and other investment opportunities going forward.”

“Babson Capital’s partnership-oriented approach to investing in the middle market is exemplified by our longstanding and valued relationship with River Capital,” said Mike Klofas, managing director and head of Babson Capital’s Mezzanine & Private Equity Group. “Blue Wave has built a leadership position in a niche market with its broad product offering, quick turnaround times, and strong customer service, and we are excited about its growth potential as it benefits from the operating experience of River Capital.”

River Capital, founded in 1983, is an Atlanta-based private investment firm which provides capital for management buyouts, recapitalizations and the growth capital needs of well-established middle market companies.

Babson Capital Management and its subsidiaries serve institutional investors around the globe and have over $154 billion in assets under management as of September 30, 2012.