Ares Capital Corporation is providing additional details on its financing commitments closed during the fourth quarter of 2014, which were included in Ares Capital’s earnings announcement released on February 26, 2015. Financing commitments made by Ares Capital in the fourth quarter totaled more than $1.3 billion.
“In the fourth quarter, Ares Capital continued to be an active provider of financing to middle market companies with more than $1.3 billion committed to 32 different transactions across a variety of industries,” said Kipp deVeer, Chief Executive Officer of Ares Capital. “Our direct origination network again proved valuable with the 18 new companies we welcomed to the Ares Capital portfolio. Additionally, our size and scale allowed us to grow with our existing borrowers and provide acquisition financing to some of our longstanding portfolio companies.”
Below is a description of eight of the transactions that closed during the fourth quarter.
Plantation Products / Freeman Spogli & Co.
Ares Capital served as administrative agent, collateral agent and lead arranger for a $114.0 million senior secured first lien credit facility and a $66.0 million second lien credit facility to support the acquisition of Plantation Products by Freeman Spogli & Co. Based in Norton, MA, Plantation Products is the leading provider of seed and seed starting products to the North American consumer lawn and garden industry.
Varsity Brands / Charlesbank Capital Partners
Ares Capital served as the administrative agent, collateral agent, lead arranger and bookrunner for a $180.0 million second lien credit facility to support the acquisition of Varsity Brands by Charlesbank Capital Partners. Ares Capital also made an equity co-investment in connection with the transaction. With a mission to inspire achievement and create memorable experiences for young people, Varsity Brands elevates the student experience, promotes participation and celebrates achievement through three unique businesses: Herff Jones, a Varsity Achievement Brand; BSN SPORTS, a Varsity Sport Brand; and Varsity Spirit.
Global Franchise Group / Levine Leichtman Capital Partners
Ares Capital served as administrative agent, joint lead arranger and sole bookrunner for a $146.0 million senior secured credit facility to support a refinancing and recapitalization of Global Franchise Group, LLC, an existing Levine Leichtman Capital Partners portfolio company. Based in Norcross, GA, Global Franchise Group is a worldwide franchisor and operator of a portfolio of quick service restaurants.
Stonewall Energy Center / Panda Power Funds & Siemens Financial Services
Ares Capital served as sole lead arranger and administrative agent for a $100.0 million mezzanine credit facility to support the construction of Stonewall Energy Center. In addition, Ares Capital served as documentation agent for a senior secured credit facility. Stonewall Energy Center is a 778-MW combined-cycle, natural gas-fired electricity generation project located in Loudoun County, Virginia on a 101-acre site located 45 miles northwest of Washington, D.C. The Stonewall project was developed by Green Energy Partners. As part of the transaction, Panda Power Funds acquired Stonewall and will provide operations and maintenance and asset management services to the project.
Triwater Holdings / Bolder Capital
Ares Capital served as the administrative agent, collateral agent, lead arranger and bookrunner for a $92.5 million senior secured credit facility to support the refinancing of Triwater Holdings, an existing Bolder Capital portfolio company, and to support its acquisition of Paragon Water Systems. Triwater is a uniquely positioned water treatment, water filtration and wastewater infrastructure repair holding company operating within the broader specialty chemicals, water filtration and infrastructure industries, providing a diverse selection of products and related services to more than 1,800 customers.
The Alaska Club / Partnership Capital Growth Investors
Ares Capital served as lead arranger, bookrunner and collateral agent for a $76.0 million senior credit facility to support the acquisition of The Alaska Club by Partnership Capital Growth investors. Ares Capital also made an equity co-investment in connection with the transaction. The Alaska Club is the leading health and fitness club operator in the state of Alaska.
Greenphire, Inc. / The Riverside Company
Ares Capital served as administrative agent for a senior secured credit facility to support the investment in Greenphire, Inc. by The Riverside Company. Ares Capital also made an equity co-investment in connection with the transaction. Greenphire, Inc. provides SaaS payment processing and management technology solutions that enable sponsors, contract research organizations and research sites to improve patient and site payment processes, drive strategic value through analytics, improve patient retention and compliance, and reduce overall costs in the clinical trial payment process.
Zemax / Arlington Capital Partners
Ares Capital served as administrative agent and collateral agent for a senior secured credit facility to support the acquisition of Zemax, LLC by Arlington Capital Partners. Zemax is a leading provider of optical and illumination design software training and support services that set the standards for the optical and illumination design industry.
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.