BOSTON, Jan. 16, 2013 (GLOBE NEWSWIRE) -- THL Credit, Inc. (Nasdaq:TCRD) ("THL Credit") today announced that it recently participated in five new investment transactions and had several recent realizations on prior investments. It provided financing for: the recapitalization of Gold, Inc. ("Goldbug"), the recapitalization of Harrison Gypsum, LLC ("Harrison"), the refinancing of WIS International ("WIS"), the acquisition of Jimmy Sanders, Inc. by Pinnacle Operating Corporation ("Pinnacle"), and also invested in the income notes of an Octagon CLO ("Octagon CLO"). Certain amounts invested are expected to be syndicated. THL Credit also recently made follow-on investments in Dr. Fresh, Inc. and Pomeroy IT Solutions, Inc. ("Pomeroy") in support of acquisitions.
Additionally, THL Credit has recently received full prepayments of its holdings in Texas Honing, Inc. ("Texas Honing"), JDC Healthcare Management, LLC ("JDC"), Pomeroy, T&D Solutions, LLC ("T&D"), Purple Communications, Inc. ("Purple"), a partial prepayment of its holdings in YP Intermediate Holdings Corp. ("Yellow Pages"), and exited its broadly syndicated first lien loan positions in the fourth quarter.
RECAPITALIZATION OF GOLDBUG
THL Credit led the junior capital financing in support of Katherine Gold's recapitalization of Goldbug. Founded in 1968 and headquartered in Aurora, CO, Goldbug is a leading designer and distributor of both private label and branded accessories and travel gear for infants and children.
"Katherine's integrity and leadership exemplify the attributes that define our unsponsored investments backing strong entrepreneurs. Her commitment to succeed has helped establish Goldbug as a best-of-breed provider and we are proud to be partnering with her," said W. Hunter Stropp, Co-President of THL Credit.
RECAPITALIZATION OF HARRISON
THL Credit participated in the senior secured term loan in the recapitalization of Harrison led by an affiliate of H.I.G. Capital LLC. Harrison mines, mills, processes and distributes gypsum and anhydrite products to a variety of end markets. The company was founded in 1955 and is headquartered in Norman, OK.
"Through the company's 57-year history, Harrison has established itself as a highly regarded, diversified miner and processor of gypsum in the United States. With its plentiful reserves of high-quality gypsum, differentiated mining processes, and cost effective distribution systems, the company distinguishes itself in terms of quality and service," said Sam Tillinghast, Co-President of THL Credit. "We are pleased to be a capital partner to CEO Russ Harrison, his management team and H.I.G."
REFINANCING OF WIS
THL Credit participated in the refinancing of WIS, a portfolio company of American Capital Strategies Ltd., investing in a second lien term loan. WIS, headquartered in San Diego, CA, is a leading global provider of outsourced inventory management services.
ACQUISITION FINANCING FOR PINNACLE
THL Credit provided second lien debt financing for the acquisition of Jimmy Sanders, Inc. ("Jimmy Sanders") by Pinnacle. Jimmy Sanders, established in 1953, is a leading distributor of crop inputs (seed, fertilizer, and crop protection chemicals) and precision agricultural services to growers in the Mid-South. The company currently services growers across Mississippi, Arkansas, Louisiana, Tennessee, Alabama, Georgia, Kentucky, and Texas. The company is headquartered in Cleveland, MS.
INVESTMENT IN OCTAGON CLO
THL Credit recently invested in the income notes of a recently issued Octagon CLO. The CLO is a $600 million cash flow arbitrage CLO, collateralized by a portfolio of senior secured loans, high-yield bonds and junior lien securities. Octagon is managed by Octagon Credit Investors, LLC.
INVESTMENT PREPAYMENTS
In October 2012, THL Credit received prepayments on its investments in Texas Honing and JDC, as described in its most recent Form 10-Q filed in November 2012. THL Credit also recently received full prepayments on its investments in Pomeroy, T&D and Purple, and a partial prepayment on its investment in Yellow Pages. Each of Pomeroy and T&D prepaid its loans at par plus a prepayment premium. Purple and Yellow Pages prepaid their loans at par.
SALE OF BROADLY SYNDICATED LOANS
In October 2012, THL Credit invested in an aggregate of $24.0 million of broadly syndicated first lien secured term loans in five companies for short term investment purposes, leveraging certain credit resources of THL Credit Senior Loan Strategies LLC, a subsidiary of THL Credit's external manager, THL Credit Advisors LLC. THL Credit exited these loan investments in the fourth quarter of 2012 and used the proceeds for new junior capital investments. A return to shareholders, including gains and interest, of approximately $0.6 million was realized in the sale of these loans.
About THL Credit
THL Credit is an externally-managed, non-diversified closed-end management investment company that has elected to be treated as a business development company (BDC) under the Investment Company Act of 1940. THL Credit's investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of middle market companies.
THL Credit is headquartered in Boston, with additional investment teams in Los Angeles and Houston. THL Credit invests primarily in junior capital securities, including subordinated, or mezzanine, debt and second lien secured debt, which junior capital may include an associated equity component such as warrants, preferred stock or other similar securities. THL Credit may also selectively invest in first lien senior secured loans that generally have structures with higher interest rates, which include unitranche investments. In certain instances, THL Credit will also make direct equity investments and may also selectively invest in more liquid broadly syndicated loans from time to time. THL Credit targets investments in middle market companies with annual revenues of between $25 million and $500 million that require capital for growth and acquisitions. THL Credit's investment activities are managed by THL Credit Advisors LLC, an investment adviser registered under the Investment Advisers Act of 1940.
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