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MMGP Supports Audax Acquisition of Preferred Compounding

February 23, 2016, 07:38 AM
Filed Under: Manufacturing

The Middle Market Growth Program (MMGP), jointly managed by Antares and LStar Capital, announced today it closed a senior secured unitranche credit facility to support the acquisition of Preferred Compounding by Audax Private Equity.

Headquartered in Barberton, OH, Preferred Compounding is a leading custom rubber compounder in North America and employs more than 400 people at its four mixing operations in Georgia, Tennessee, Mexico and Ohio.

“We appreciate the flexibility and speed that Antares and LStar provide through MMGP,” said Mark D. Cordes, managing director of Audax Group.

“Our sponsors and borrowers benefit from the ease and certainty of having a one-stop source of financing,” said John Goodwin, managing director of Antares Capital. “We look forward to supporting Audax and the team at Preferred Compounding as they expand the company’s capabilities and services.”

MMGP provides private equity sponsors and borrowers with access to first lien unitranche loans. MMGP does not require rating agency meetings or a syndication process so deals can close in as little as three weeks.

Preferred Compounding supplies proprietary and custom mixed rubber compounds to customers including molders, extruders, mixers and others in the rubber goods market. Primary industries served are automotive, construction, power generation and roll goods.

Audax Private Equity is an integral part of Audax Group, which manages more than $9 billion in assets across its private equity, mezzanine and senior debt businesses. Audax Private Equity also owns Northeast Ohio companies TPC and Gabriel Performance Products, both in Macedonia, and previously owned ColorMatrix in Berea and Chart Industries in Cleveland.

LStar Capital is the credit affiliate of Lone Star Funds, a global private equity firm that invests in real estate, equity, credit and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized fifteen private equity funds with aggregate capital commitments totaling over $60 billion.

Antares Capital is a leading provider of financing solutions for middle-market, private equity-backed transactions with offices in Atlanta, Chicago, Los Angeles, New York, Norwalk (Connecticut) and Toronto. Antares has facilitated more than $120 billion in financing over the past five years, and was named 2014 lender of the Year by Mergers & Acquisitions. Antares also was recognized by Private Debt Investor and Private Equity International as 2013 Lender of the Year, North America and Mid-Cap Lender of the Year, North America, respectively.

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