Bethesda, MD -- American Capital Strategies, Ltd. (Nasdaq:ACAS) announced today that it has invested $22.7 million in the recapitalization of Lubricating Specialties Company, the largest independent manufacturer, blender and marketer of greases and lubricants on the West Coast. The investment takes the form of senior debt and senior subordinated debt with warrants. Comerica Bank is the agent for the senior debt.
"American Capital responded to the current tightening of the senior credit market by structuring a participation in the company's senior credit facility alongside of our typical long term subordinated debt investment," said American Capital President and COO Adam Blumenthal. "Our flexible approach allowed management to complete a recapitalization while creating an opportunity that will create long term value for American Capital by investing in a niche manufacturer of value-added products with dominant market share."
To date, American Capital new investments this year total approximately $225 million.
"Lubricating Specialties' competitive advantages include a diversified supply of base oil, superior quality, product versatility, manufacturing flexibility, and proximity to Asian markets," said American Capital Principal John Thornton. "The company's history of strong sales growth and profitability make it an excellent platform for expansion."
"American Capital's backing will enable us to further pursue some exciting market opportunities," said Lubricating Specialties Chairman Fred Atchity. "Their flexibility and speed were essential to the completion of the transaction."
American Capital is a publicly traded buyout and mezzanine fund. American Capital is an equity partner in management and employee buyouts; invests in debt and equity of companies led by private equity firms, and provides capital directly to private and small public companies. American Capital funds growth, acquisitions and recapitalizations.
Companies interested in learning more about American Capital's flexible financing and ability to provide senior debt, subordinated debt and equity should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements regarding expected results of American Capital Strategies are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
