The Senior Secured Loan Program (SSLP), jointly managed by an affiliate of Ares Capital Corporation and an affiliate of GE Capital, announced that during the first quarter of 2015 it closed six financing transactions, including refinancings of existing portfolio companies, totaling over $1.0 billion. Since January 1, 2010 through March 31, 2015, the SSLP has committed approximately $19.2 billion to middle market borrowers.
Below is a description of four of the transactions that closed during the first quarter.
Diversified Foodservice Supply / New Mountain Capital
Ares Capital and GE Capital Markets served as joint lead arrangers and joint bookrunners in a $194.0 million senior secured term loan provided by the SSLP to support the acquisition of Diversified Foodservice Supply by a fund managed by New Mountain Capital. Diversified Foodservice Supply is a leading distributor of maintenance, repair and operations parts, supplies, and equipment to the foodservice industry. The company currently operates through multiple brands including AllPoints Foodservice Parts & Supplies, Tundra Restaurant Supply, Franklin Machine Products, Mill Hardware and Restaurant Parts & More.
Gehl Foods / Wind Point Partners
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $161.5 million senior secured term loan provided by the SSLP to support the acquisition of Gehl Foods by Wind Point Partners. Gehl Foods is a Germantown, Wisconsin-based maker of ready-to-serve, real dairy products. The company uses an advanced aseptic process to eliminate microorganisms that cause dairy foods to spoil and at the same time locks in freshness and taste.
Industrial Service Solutions
Ares Capital and GE Capital Markets served as joint lead arrangers and joint bookrunners in a $173.9 million senior secured term loan provided by the SSLP to support a refinancing of Industrial Service Solutions. Industrial Service Solutions is a uniquely positioned industrial services holding company of geographically diverse but complementary independent service companies that offer field services, shop services and supply services to a wide variety of end user markets.
Zywave / Aurora Capital Group
GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a senior secured credit facility provided by the SSLP to support the dividend recapitalization of Zywave, an Aurora Capital Group portfolio company. Zywave is the leading provider of SaaS technology solutions for the employee benefits and property and casualty insurance distribution industry. The company’s solutions include technology-enabled content and communication, agency automation, and business intelligence and analytics, designed to help insurance brokers of all sizes gain profitable market share.
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.