NEW YORK, Jun 07, 2010 (BUSINESS WIRE) — Ares Capital Corporation /quotes/comstock/15*!arcc/quotes/nls/arcc (ARCC 12.67, -0.23, -1.78%) announced today that it has closed three new debt financing commitments totaling more than $110 million with funded investments at closing of over $80 million.
Ares Capital served as co-lead arranger for the senior secured debt financing for The Paradies Shops, an independent, family-owned and managed operator of over 500 airport retail stores in more than 70 markets across the United States and Canada. The financing was used to support the majority acquisition of The Paradies Shops by financial sponsor Freeman Spogli & Co. Ares Capital committed approximately $70 million in the facility, approximately $40 million of which was initially funded. This transaction represents Ares Capital’s third investment in the airport retail industry.
Separately, Ares Capital provided debt financing to support the acquisition by financial sponsor Lee Equity Partners of Papa Murphy’s, a franchisor of branded Take ‘N’ Bake pizza stores with over 1,150 stores in 35 states as well as Canada. Ares Capital invested approximately $23.5 million in the senior secured credit facility.
Finally, Ares Capital provided $20 million in senior subordinated debt financing to U.S. Renal Care to support its acquisition of Dialysis Corporation of America. U.S. Renal Care is majority owned by SV Life Sciences, Thoma Cressey Equity Partners, Salix Ventures and Select Capital. Following the acquisition, U.S. Renal Care is the sixth largest dialysis company in the United States. Ares Capital’s $20 million commitment was part of a $40 million senior subordinated term loan.
“These three financings demonstrate our continued commitment to actively deploy capital into high-quality middle market companies that have attractive risk/reward profiles,” said Michael Arougheti, President of Ares Capital Corporation. “We are excited to be supporting highly experienced investors within these industry verticals.”
About Ares Capital Corporation
Ares Capital is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. Ares Capital is a specialty finance company that provides integrated debt and equity financing solutions to U.S. middle market companies. Ares Capital invests primarily in first and second lien loans and mezzanine debt, which in some cases includes an equity component. To a lesser extent, Ares Capital also makes equity investments. Ares Capital is externally managed by Ares Capital Management LLC, an affiliate of Ares Management LLC, a global alternative asset manager and a Securities and Exchange Commission registered investment adviser. As of March 31, 2010, Ares Management has approximately $37 billion of committed capital under management (pro forma for Ares Capital’s April 2010 acquisition of Allied Capital).
About The Paradies Shops
Named Best Airport Retailer for the past 15 consecutive years by Airport Revenue News, The Paradies Shops was established in 1960. A family-owned business, The Paradies Shops operates over 500 stores in more than 70 markets across the United States and Canada. With extensive experience in operating both local and national brands, including CNBC News, PGA TOUR Shops, Brooks Brothers, Brighton Collectibles, Harley-Davidson, and The New York Times Bookstores, The Paradies Shops maintains a substantial presence as one of the largest airport retailers. For more information, please visit www.theparadiesshops.com.
About Freeman Spogli & Co.
Freeman Spogli & Co. is a private investment firm dedicated exclusively to investing in and partnering with management in retail, direct marketing and distribution companies positioned for growth. Since its founding in 1983, Freeman Spogli has invested over $2.6 billion in 43 portfolio companies with aggregate transaction value of $17 billion. Freeman Spogli has offices in Los Angeles and New York. For more information, please visit www.freemanspogli.com.
About Papa Murphy’s
Papa Murphy’s is the fifth-largest pizza chain in the country and the pioneer and leader of the Take ‘N’ Bake pizza segment. Papa Murphy’s operates over 1,150 franchised and corporate-owned locations in 35 states and Canada. The Vancouver, Washington-based company offers custom-made pizzas featuring high-quality fresh toppings generously layered on pizza dough that is made fresh each morning in each store. By baking Papa Murphy’s pizzas at home, customers get to experience the home-baked aroma of a convenient, delicious meal that the brand is known for. In addition to handmade pizzas, the company offers a growing menu of Take ‘N’ Bake items, including Cheesy Bread, Cinnamon Wheels, and chocolate chip cookie dough. Papa Murphy’s has been voted “Best Pizza Chain in America” for seven consecutive years by consumers nationwide in the Restaurants and Institutions “Consumers’ Choice in Chains” survey and is a four-time recipient of Pizza Today’s Chain of the Year award, most recently in 2009. For more information, visit www.papamurphys.com.
About Lee Equity Partners
Lee Equity Partners, LLC makes private equity investments in growth oriented, mid and upper mid cap companies located primarily in the United States. Lee Equity seeks to invest in businesses with sustainable competitive positions, high quality management and the ability to demonstrate continued growth. Lee Equity is a generalist firm whose professionals have significant expertise in a number of industries, including Financial, Healthcare and Business Services, Retail and Consumer Products and Media.
About U.S. Renal Care
Founded in 2000 by an experienced team of healthcare executives, U.S. Renal Care, Inc. works in partnership with nephrologists to develop, acquire, and operate outpatient treatment centers for persons suffering from chronic kidney failure, also known as End Stage Renal Disease. The company provides more than 5,500 patients with their choice of a full range of quality in-center, acute or at-home hemodialysis and peritoneal dialysis services. U.S. Renal Care operates 120 outpatient, home and specialty hospital dialysis programs and facilities in nine states. For more information on U.S. Renal Care, Inc. please visit www.usrenalcare.com