The Unitranche Fund LLC today announced the closing of a $76 million
unitranche debt financing in support of an acquisition by an affiliate
of Audax Group. This is the second closed financing for Unitranche Fund
LLC, co-managed by affiliates of GE Commercial Finance and Allied
Capital. GE Antares Capital also provided a $15 million revolver to the
company.
John Goodwin, Managing Director of GE Antares Capital said: “We
are delighted to work with Audax Group and management to finance this
transaction. We have partnered with Audax for many years, and are
pleased to offer an attractive alternative to traditional senior/junior
financing. Our ability to deliver the unitranche product provides
tremendous value to sponsors by offering a one-stop debt solution, and
eliminating reliance on today’s challenging
capital markets.”
Geoffrey S. Rehnert, Co-CEO of Audax Group said, “The
new Unitranche Fund provided a one-stop financing solution for our
recent acquisition in the automotive aftermarket industry. The GE and
Allied teams worked seamlessly throughout the financing process and the
unitranche product gave Audax an alternative financing solution to a
traditional capital markets execution.”
“This second closing further validates the
demand for the unitranche loan product,” said
John Volpe, Senior Managing Director of GE Commercial Finance, Global
Sponsor Finance. “The GE and Allied Capital
teams worked well together, creating a positive outcome for Audax,”
he added. Mike Grisius, Managing Director of Allied Capital said, “With
our partners at GE, we are committed to providing a reliable loan
product which gives borrowers and sponsors greater certainty of
execution in today’s uncertain loan markets.”
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.
About Audax Group
Audax Group, founded in 1999, is a leading investor in middle market
companies. With offices in Boston and New York, Audax manages in excess
of $3.7 billion of equity, mezzanine debt, and senior loan capital. For
more information visit the Audax Group website www.audaxgroup.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.
