Abacus carves out debt package for PE-backed company

Abacus Finance Group provided a $20.5 million cash flow based senior term loan and revolver to support an investment into Pacific Handy Cutter by Levine Leichtman Capital Partners. Abacus acted as the administrative agent and sole lead arranger on the transaction with legal counsel provided by Goulston & Storrs, Abacus said in a statement yesterday (22 August)

Abacus, Levine Leichtman and Pacific Handy Cutters representatives did not return messages seeking further detail by press time.

Pacific Handy Cutters designs and manufacturers cutting tools and safety blades that are used in the grocery, retail, restaurant and industrial warehouse markets. Founded in 1950, the company is headquartered in Irvine, California.

In 2007, Pacific Handy Cutters was acquired by American Capital, which sold the company to Levine Leichtman Capital Partners in May at a 9.8 percent return on its investment, according to a statement at the time. Later that month, American Capital signed a deal to be acquired by the Ares Capital Corporation for $3.43 billion .

Levine Leichtman is a private equity firm that was founded in 1984 and is focused on investing in mid-market companies in the US and Europe The firm has managed approximately $7.5 billion in institutional capital from investors including pension plans, foundations, endowments and other organisations. Levine Leichtman is headquartered in Los Angeles and maintains offices in Dallas, Chicago, London, New York and the Hague.

Abacus is a direct lending company focused on the provision of cash flow senior loans to private equity-backed transactions in the lower middle market. An affiliate of Emigrant Bank holding company New York Private Bank & Trust, the firm typically offers loans of up to $60 million with hold sizes of between $10 million and $30 million to companies $3 million – $15 million in EBITDA.