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$74.5 Million in HomeAway, Inc.
American Capital and an affiliate invested $74.5 million in HomeAway, Inc., the world leader in online “for-rent-by-owner” vacation home rentals. American Capital’s one stop financing solution supported HomeAway’s acquisition of VRBO.com, also an online vacation rental marketplace with more than 65,000 paid property listings, and Abritel.fr, the leading French online vacation rental site, which represented nearly 30,000 paid property listings in 2006. American Capital’s investment took the form of a senior term A unirate loan, convertible preferred equity and common equity. American Capital Equity Fund I LLC (“ACE”), a fund managed by American Capital, provided 30% of the American Capital equity investment. HomeAway’s original investors, Austin Ventures and Redpoint Ventures, joined new investors Trident Capital and Institutional Venture Partners in investing in convertible preferred equity.
HomeAway’s portfolio of vacation rental websites includes HomeAway.com, CyberRentals.com, A1Vacations.com, GreatRentals.com, TripHomes.com, HolidayRentals.co.uk, HolidayRentals.fr and FeWo-direkt.de, as well as VRBO.com and Abritel.fr. With the acquisition of VRBO, HomeAway’s largest competitor, HomeAway becomes the largest online vacation rental marketplace in the world. HomeAway enables property owners and managers to list properties available for rental on any or all of its websites by submitting online descriptions, photos, pricing, availability, contact and other information. Formed in 2005, HomeAway is headquartered in Austin, TX and maintains a call center in Hardy, VA, European headquarters in Acton, U.K., and offices in Kassel, Germany and Marseilles, France.
For the complete press release, click here.
Contact Virginia M. Turezyn, Managing Director, Technology Group, at (650) 289-4561.
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$31 Million in One Stop Financing of J-Pac, LLC
American Capital invested $31 million in J-Pac, LLC, a leading supplier of medical contract manufacturing, assembly and packaging services. American Capital’s one stop debt financing solution took the form of senior term unirate loans and common equity and supported Riverside Partners LLC’s buyout of J-Pac. American Capital also provided a revolving credit facility. American Capital Equity Fund I LLC (“ACE”), a fund managed by American Capital, provided 30% of the American Capital equity investment. J-Pac’s owner and management team invested in J-Pac’s equity, along with Riverside Partners.
Founded in 1983, J-Pac provides medical device and pharmaceutical OEMs with the equipment and value added contracted services required to meet the rigorous regulatory and safety requirements of medicines and medical devices. The Company’s products are used in growing medical device markets such as cardiovascular, orthopedics, general surgery, minimally invasive procedures, wound care and medicine delivery systems. J-Pac specializes in contract manufacturing, contract packaging, clean room processing and implantable textiles. The Company operates out of two divisions, J-Pac and Doyen Medipharm. Headquartered in Somersworth, New Hampshire, J-Pac maintains a manufacturing facility in Florida and the United Kingdom and a sales office in Malaysia.
For the complete press release, click here.
Contact Frank Do, Managing Director, at (310) 806-6280.
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$22 Million Investment in Trigeant, Ltd.
American Capital invested $22 million in Trigeant, Ltd., a refiner of heavy and sour crude stock into asphalt for paving and roofing. American Capital’s investment took the form of a senior secured term loan. The investment was used to refinance existing indebtedness and for capital investment in a new distribution facility.
Trigeant, founded in 2001, refines heavy and sour crude stock into asphalt for paving and roofing. The Company produces a complete range of asphalt grades that meet the highest U.S. government standards. It also produces distillate products, including preflash distillate, marine diesel oil and vacuum gas oil, which are sold to local refineries for further processing. Trigeant’s asphalt customers are primarily wholesalers and vertically integrated companies that perform paving work. Its distillate customers are major complex refiners. The Company’s corporate offices are located in Boca Raton, FL and Houston, TX, while its refinery operations are located in Corpus Christi, TX.
For the complete press release, click here.
Contact Myung Yi, Managing Director, at (301) 951-1622.
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$37.5 Million Investment in Forest Alaska Operating, LLC
American Capital invested $37.5 million in Forest Alaska Operating, LLC, a subsidiary of Forest Oil Corporation, an oil and gas company engaged in the acquisition, exploration, development and production of reserves primarily in North America. American Capital’s investment supported the establishment of Forest Alaska as an unrestricted subsidiary of Forest Oil and took the form of participation in a second lien term loan facility. Proceeds from the transaction were also used to reduce Forest Oil’s outstanding borrowings under its credit facility. Senior secured first and second lien term loan facilities were arranged by Credit Suisse Securities LLC and JPMorgan Inc.
Founded in 1916, Forest Oil Corporation is a large independent, oil and gas exploration and production company with operations primarily in North America. Forest Oil and its subsidiaries are engaged in the exploration, acquisition, development, production and marketing of natural gas and crude oil in North America and some international locations. Headquartered in Denver, CO, Forest Oil has principal reserves and producing properties in Alaska, Louisiana, Oklahoma, Texas, Utah, Wyoming and the Gulf of Mexico and in Alberta, British Columbia and the Northwest Territories of Canada.
Forest Alaska’s reserves and operations are located both onshore and offshore in the Cook Inlet area of Alaska. In addition to producing properties, Forest Alaska’s assets include three onshore facilities, seven platform rigs and a processing facility in Kustatan, Alaska.
For the complete press release, click here.
Contact Kevin Kuykendall, Managing Director, Energy Group, at (214) 273-6634 or John Capparella, Managing Director, Second Lien Group, at (212) 444-9320.
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$77 Million Add-on Investment of Evans Analytical Group
American Capital invested an additional $77 million in its portfolio company Evans Analytical Group LLC (“EAG”), the world’s largest independent provider of microanalytical surface analysis and materials characterization services. American Capital’s investment supported EAG’s add-on acquisitions of five companies: Advanced Materials Engineering Research Inc. (“AMER”), a provider of transmission electron microscopy (“TEM”) testing and circuit repair services in both California and Shanghai, China; Materials Analytical Services Inc. (“MAS”), a leading provider of TEM and other surface analysis testing services lab with three locations in the U.S.; Cascade Scientific and Cascade GmbH (collectively “Cascade”), one of the largest independent surface analysis and materials characterization labs in Europe, the U.K. and Germany; the Shiva Technologies Group (“Shiva”), comprised of Shiva US and Shiva France, the largest provider of glow discharge mass spectrometry (“GDMS”) services worldwide; and Nano Sciences (“Nano”), the exclusive sales representative for EAG and Shiva in Japan. American Capital’s investments took the form of additional senior term loans and additional senior subordinated debt. American Capital also increased EAG’s revolving credit facility.
Evans Analytical Group was formed in June 2005 from the combination of assets of the Evans Analytical laboratories of High Voltage Engineering Corporation and three affiliates - Evans East, Evans Texas and Cascade Scientific Labs Inc. EAG is the largest independent provider of microanalytical surface testing services in the world. The Company provides a comprehensive suite of microanalytical imaging, surface analysis and materials characterization services as well as semiconductor circuit repair and failure analysis testing. EAG's services are a critical enabling component in research & development and manufacturing and sales support functions. They are used specifically in developing new processes or materials, transferring those processes to production, developing and qualifying new production tools and solving manufacturing yield problems. EAG has more than 2,000 customers in the semiconductor, semiconductor equipment, electronics, biomedical, biotech and other industries. Headquartered in Sunnyvale, California, EAG also has facilities in Arizona, Massachusetts, Minnesota, New Jersey, New York, North Carolina, Texas, China, Taiwan, England, France, Germany, Japan and the United Kingdom, as well as sales and support offices in Korea and Singapore.
For the complete press release, click here.
Contact Myung Yi, Managing Director, Special Situations, at (301) 951-6122.
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One Stop Financing to Venus Swimwear and WinterSilks
American Capital provided a one stop financing package to Venus Swimwear, Inc., a leading direct marketer of women’s swimwear and sportswear, and WinterSilks, LLC, the largest direct marketer of silk undergarments, apparel and accessories. American Capital’s financing solution supported the recapitalization of Venus Swimwear and WinterSilks sponsored by Golden Gate Capital in partnership with the companies’ existing management teams.
Venus Swimwear was founded in 1982. In 1999, it acquired a majority interest in WinterSilks, a direct marketer of silk apparel whose largely fall/winter business complemented Venus Swimwear’s primarily spring/summer business. In 2000, Venus Swimwear launched Venus Apparel, which markets evening and day apparel and accessories. The Company is one of the largest direct marketers of women’s swimwear and sportswear and the largest direct marketer of silk thermal apparel and undergarments. Venus Swimwear is headquartered in Jacksonville, FL and employs over 500 people.
For the complete press release, click here.
Contact Natasha Volyanskaya, Principal, at (415) 591-0120.
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$50 Million Investment to Support the Recapitalization of Varel Holdings, Inc.
American Capital invested $50 million in the recapitalization of Varel Holdings, Inc., parent to Varel International Ltd., a worldwide designer and manufacturer of roller-cone and polycrystalline diamond compact ("PDC") drill bits for the oil & gas and mining industries. American Capital’s investment took the form of a senior unirate loan and junior subordinated debt. Apollo Investment Corporation, transaction leader, also invested in a senior unirate loan and junior subordinated debt. KRG Capital Partners, L.L.C. has maintained its majority ownership of the Company.
Founded in 1947, Varel is a leading designer and manufacturer of roller-cone and PDC drill bits for the global oil & gas and mining industries. A global business, Varel markets drill bits in 85 countries and generates approximately half of its revenues outside the United States. Varel’s major customers include ExxonMobil Corporation, Occidental Petroleum Company, Saudi Arabian Oil Company, Total, Sonatrach, Kuwait Oil Company and Royal Dutch Shell plc. The Company is headquartered in Carrollton, TX. It has manufacturing facilities in Carrollton, Houston, TX, Matamoros, Mexico and Tarbes, France, as well as sales offices throughout the world. Varel has more than 1,000 employees.
For the complete press release, click here.
Contact Kevin Kuykendall, Managing Director, Energy Group, at (214) 273-6634.
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American Capital Appoints Brendan Gallaher Managing Director, Distressed Debt Group
In March, American Capital announced that it had appointed Brendan Gallaher as Managing Director in the Distressed Debt Group. Mr. Gallaher brings over 20 years of experience in the distressed arena. He will be building a team of investment professionals within the Distressed Debt Group in American Capital’s Los Angeles office.
Prior to joining American Capital, Mr. Gallaher was on the Executive Committee and Investment Committee of William E. Simon & Sons, overseeing private equity, real estate and special situations investments, and he managed domestic and offshore distressed funds as President of William E. Simon & Sons Special Situations. Prior to that, he coordinated workouts and established and managed a global distressed proprietary fund for Bank of America. Mr. Gallaher holds a B.A. with honors in Economics from the College of William and Mary, a M.A. with honors and L.L.M. with honors from Cambridge University.
For the complete press release, click here.
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American Capital Announces Formation of Second Lien Group
In March, American Capital announced the formation of its Second Lien Group. Led by John Capperella, Managing Director, the Second Lien Group offers secured and unsecured junior capital investments to support an array of financing needs across a variety of industries. The Group invests in junior capital, with a concentration on syndicated investments that are distributed through the loan sales desks of the market’s growing junior capital arranger community. Also joining the Group are Vice Presidents Steven Devloo and Ryan Brauns and Associates Dipalee Rathod, Matt Crumrine and Kathy Grabenstatter.
Since its formation, the Second Lien Group has invested approximately $86 million in six companies, including Gold Toe-Moretz, a designer, manufacturer, marketer and retailer of socks; Neways International, a marketer of nutritional supplements, skin-care and other cosmetic products; Integraph, a global provider of spatial information management software; MagnaCare Holdings Inc., a New York-based provider of health management services; Butler Animal Health Supply Inc., a distributor of animal health related products; and Forest Alaska Operating LLC, a subsidiary of Forest Oil Corporation, an oil and gas company engaged in the acquisition, exploration, development and production of reserves primarily in North America. The Forest Alaska investment was executed jointly by American Capital's Second Lien and Energy Groups.
Mr. Capperella joined American Capital after serving as Senior Vice President at GE Capital Markets where he was responsible for structuring and selling all GE junior capital investments. Prior to GE, Mr. Capperella worked at two mezzanine funds, where he was responsible for originating, structuring and closing middle market loans. Mr. Capperella began his leveraged lending career at Heller Financial, where he spent nine years underwriting, documenting, closing and monitoring asset-based and cash flow investments. Mr. Capperella holds a B.S. degree in Civil Engineering from the University of Delaware and an M.B.A. from the University of Chicago.
Mr. Devloo joined American Capital from the Leveraged Finance/Financial Sponsors Group at Credit Suisse First Boston and Mr. Brauns joined American Capital from the Corporate Lending Group at GE Capital. Ms. Rathod joined American Capital from the Leveraged Finance Group at Deutsche Bank, Mr. Crumrine joined American Capital from the M&A Group at Dresdner Kleinwort Wasserstein, and Ms. Grabenstatter joined American Capital from the Corporate Finance Group at Prudential Capital.
For the complete press release, click here.
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American Capital Elects John A. Koskinen to Board of Directors
In February, American Capital announced that John A. Koskinen has been elected to its Board of Directors.
Mr. Koskinen, former Chairman of the Board of Trustees of Duke University, was also President of The Palmieri Company, which restructured large, troubled operating companies. During Mr. Koskinen's 21 years with Palmieri, he helped reorganize the Penn Central Transportation Company; Levitt and Sons, Incorporated; the Teamsters Pension Fund and Mutual Benefit Life Insurance Company, the largest failed life insurance company in U.S. history.
Mr. Koskinen has been President of the United States Soccer Foundation and has served as a Director of the AES Corporation, one of the world's largest global power companies, since 2004. Prior to assuming this position, Mr. Koskinen served as Deputy Mayor and City Administrator of the District of Columbia for three years, beginning in September, 2000. He was responsible for oversight and coordination of all city-operating departments. Earlier in 2000 he developed recommendations for restructuring the operations of the DC public schools. From 1994 to 1997, he was the Deputy Director for Management of the U.S. Office of Management and Budget and then was Assistant to President Clinton and Chair of the President's Council on Year 2000 Conversion from 1998 to 2000.
Mr. Koskinen graduated Magna Cum Laude from Duke University in 1961, where he was a member of Phi Beta Kappa; graduated with an LL.B., cum laude, from Yale Law School in 1964; and did post graduate work in international law at Cambridge University, Cambridge, England, 1964-65. Mr. Koskinen and his wife, the former Patricia Salz, have two adult children, Cheryl and Jeffrey, and live in Washington, D.C.
For the complete press release, click here.
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Charts
Growth in Investments 2003 – 2007
*Figures do not include investments made by funds under management.
**Approximate number.
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Performance data quoted above represents past performance of American Capital. Past performance does not guarantee future results and the investment return and principal value of an investment in American Capital will likely fluctuate. Consequently, an investor's shares, when sold, may be worth more or less than their original cost. Additionally, American Capital's current performance may be lower or higher than the performance data quoted above.
This newsletter contains forward-looking statements. The statements regarding expected results of American Capital 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, national and international economic conditions, and changes in the conditions of the industries in which American Capital has made investments. This newsletter is neither an offer to sell nor a solicitation of an offer to buy shares of common stock. The offering of securities can be made only by means of a prospectus and a related prospectus supplement.
Two Bethesda Metro Center
14th Floor
Bethesda, MD 20814
Phone: (301) 951-6122
Fax: (301) 654-6714
Info@AmericanCapital.com
Nasdaq: ACAS
www.AmericanCapital.com
(800) 248-9340
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