The Unitranche Fund LLC, co-managed by affiliates of GE Commercial
Finance and Allied Capital, announced today the closing of its third
financing, a $103 million debt package to support the acquisition of
Central Power Products (“Shuttlewagon”)
by Nordco Inc., a portfolio company of The Riverside Company, and for
the recapitalization of Nordco. The facility consisted of an $88 million
unitranche term loan from the Unitranche Fund and a $15 million revolver
from GE Antares Capital.
Shuttlewagon, an innovative manufacturer of railcar movers, is the third
add-on to Nordco, a leading designer and provider of new and rebuilt
maintenance-of-way equipment, repair parts and services for North
American railroads. Based in Grandview, Missouri, Shuttlewagon is one of
only three manufacturers of railcar movers in the United States, and is
the only one to use rubber tires for traction instead of steel wheels.
Rubber tires offer a significant competitive advantage and benefit
customers by allowing the railcar mover to pull more railcars than
comparably-sized movers using steel wheel technology.
“We were delighted to work with The Riverside
Company and Nordco to finance this acquisition and recapitalization,”
said Peter McWeeny, Senior Vice President of GE Antares Capital. “The
unitranche loan was an ideal product to fully finance the transaction
while providing speed and certainty to close.”
“The combined efforts of GE Antares and Allied
Capital were critical to achieving this successful financing. Their
unitranche loan product made them our clear choice as a partner,”
said Chip Walker, Principal of The Riverside Company. “In
a challenging financing market, GE Antares and Allied Capital stepped up
in a big way to support Nordco’s acquisition
of Shuttlewagon which is why they are such valued partners.”
About Unitranche Fund LLC
Unitranche Fund LLC (the “Fund”)
was formed in December 2007 by Allied Capital and GE Commercial Finance.
The $3.6 billion Fund can invest up to $270 million for a single
borrower, while Allied Capital and GE Commercial Finance may jointly
underwrite amounts above that, up to $500 million in total debt
financing. The Fund will retain a majority of each credit facility. The
Fund targets investments in a wide range of industry sectors, including
business services, healthcare, media, energy, aerospace and
transportation. A unitranche loan blends senior and junior debt pricing
and terms into a single first lien debt facility, and provides a simple,
attractive alternative to traditional 1st lien/2nd lien structures.
Borrowers benefit from simplified documentation through a single credit
agreement, greater certainty of execution, and reduced decision-making
complexity throughout the life of the loan.
About GE Antares Capital
GE Antares Capital is a unit of GE Commercial Finance - Global Sponsor
Finance. With $13 billion in assets, and offices in Chicago,
London, Los Angeles, New York, and San Francisco, GE Antares offers a “one-stop”
source for GE’s lending and other services
offered to middle market private equity sponsors. For more information,
visit the GE Antares website at www.geantares.com.
About GE Commercial Finance
GE Commercial Finance, which offers businesses around the globe an array
of financial products and services, has assets of approximately $300
billion and is headquartered in Norwalk, Connecticut. GE (NYSE: GE) is
Imagination at Work – a diversified
technology, media and financial services company focused on solving some
of the world’s toughest problems. With
products and services ranging from aircraft engines, power generation,
water processing and security technology to medical imaging, business
and consumer financing, media content and industrial products, GE serves
customers in more than 100 countries and employs more than 300,000
people worldwide. For more information, visit the company’s
website at www.ge.com.
About Allied Capital
Allied Capital (NYSE: ALD) is a leading business development company in
the U.S. that invests private debt and equity capital in middle market
businesses nationwide. Founded in 1958 and operating as a public company
since 1960, Allied Capital is celebrating 50 years of investing in and
supporting the U.S. entrepreneurial economy.
Allied Capital invests long-term debt and equity capital in management
and sponsor-led buyouts, and for recapitalizations, acquisitions and
growth of middle market companies. Allied Capital’s
one-stop financing capabilities include first and second lien senior
loans, unitranche debt, junior or subordinated debt and equity. Allied
Capital seeks to invest in stable, less cyclical companies that produce
significant free cash flow and high returns on invested capital. At
December 31, 2007, the Company’s private
finance portfolio included investments in 120 companies that currently
generate aggregate revenues of over $13 billion and employ more than
95,000 people.
Headquartered in Washington, DC, Allied Capital offers shareholders the
opportunity to participate in the private equity industry through an
investment in its New York Stock Exchange-listed stock (NYSE: ALD).
Allied Capital has paid consistent or increasing regular, quarterly cash
dividends annually to shareholders since 1963. For more information,
please visit www.alliedcapital.com.
Forward-Looking Statements
The information contained in this press release contains forward-looking
statements. These forward-looking statements are subject to the inherent
uncertainties in predicting future results and conditions. Certain
factors could cause actual results and conditions to differ materially
from those projected in these forward-looking statements.
