The Senior Secured Loan Program (SSLP), jointly managed by an affiliate of Ares Capital Corporation (“Ares Capital”) and an affiliate of GE Capital, announced on November 4, 2014 that during the third quarter it closed 6 financing transactions, including refinancings of existing portfolio companies, totaling $887.3 million. Since January 1, 2010, the SSLP has committed approximately $16.8 billion to middle market borrowers, including $2.5 billion across 19 transactions year-to-date through September 30, 2014.
Below is a description of three of the transactions that closed during the third quarter.
Atlantic City Linen Supply / Alvarez & Marsal Capital Partners
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $92.6 million senior secured term loan and a $20.0 million delayed draw term loan provided by the SSLP to support the merger of Brady Linen Services with AC Linen, a portfolio company of Alvarez & Marsal Capital, and the associated recapitalization of the combined company. Brady Linen Services is the leading provider of outsourced linen and laundry services to the Las Vegas hotel and gaming industry. Brady and AC Linen combined to form the largest hospitality-focused laundry in the country, processing over one million pounds of laundry per day in 12 facilities across six states along both coasts and the Bahamas. The company has a leading market position in each of its core markets, including Las Vegas, Atlantic City, Boston, Philadelphia and Connecticut.
Caliber Collision / OMERS Private Equity
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $330.0 million senior secured term loan and a $50.0 million delayed draw term loan provided by the SSLP and Ares Capital to support the refinancing of existing debt and Caliber’s acquisition pipeline. Founded in 1997 and headquartered in Lewisville, Texas, Caliber Collision is one of the largest collision repair companies in the United States, operating primarily in the southwest.
Tectum Holdings / TA Associates
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a senior secured term loan provided by the SSLP and Ares Capital to support the acquisition of Tectum Holdings by TA Associates. Tectum Holdings is the leading supplier of branded light duty truck accessories for pick-up truck applications.
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 $11 billion of available capital and can hold up to $350 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.
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, and is externally managed by a subsidiary of Ares Management, L.P. (“Ares Management”).