Abacus Finance warms up to heating firm acquisition

The private equity acquisition of ASPEQ Heating Group was financed by alternative mid-market lender Abacus Finance.  

New York-based Abacus Finance arranged $47 million in senior secured credit facilities to back Massachusetts-based private equity firm Bunker Hill Capital’s acquisition of ASPEQ Heating Group, a Missouri-based manufacturer of industrial heating equipment. Abacus Finance, a direct lender that backs private equity-sponsored lower-mid market companies, was lead administrative agent and joint lead arranger on the deal, the firm announced on July 13.

Bunker Hill completed the acquisition on 30 June this year.

This is not the first time that Abacus and Bunker Hill have done business together. In December last year, Abacus Finance along with Webster Bank arranged a $29.5 million senior secured debt financing to refinance Bunker Hill’s Connecticut-based portfolio company Rizing LLC, an SAP software consulting firm.

 “There was a quick underwriting decision with certainty of close – reasons why they are a go-to lender for us,” said Rufus Clark, co-founder and managing partner, Bunker Hill Capital in the statement.

Bunker Hill Capital mainly invests in four industry sectors;industrial products, business services, consumer products and specialty retail. Investments include California Family Fitness, a fitness centre operator based in Sacramento, California and Papa Gino’s, a New England restaurant chain.

Abacus makes loans of up to $50 million for companies with EBITDA ranging between $3 million and $15 million. The lender is an affiliate of New York Private Bank & Trust, the holding company for Emigrant Bank.