Ares, GE provide £75m to CVC buyout

The firms’ €1.75 billion ESSLP joint venture is roughly three-quarters invested.

Alternative lenders Ares Management and GE Capital have provided £75 million (€103.3 million; $114.9 million) in a unitranche debt package to CVC Growth Partners, in the private equity fund’s buyout of Wireless Logic, a UK Machine to Machine (M2M) managed services provider, according to a statement. Leverage on the transaction stands at around 6x, PDI understands.

Of the financing, £65 million was extended from the lenders joint venture, the European Senior Secured Loan Programme, in the form of a unitranche facility. In addition, a £10 million working capital and acquisition facility was provided by GE Capital.

The deal marks the twelfth transaction for the ESSLP since its inception in 2012 and brings total commitments to €1.3 billion from the €1.75 billion programme.

“We felt that unitranche was the most appropriate financing structure given the quality of Wireless Logic’s business and its requirement for a flexible and scalable debt structure. We are delighted to have been selected by CVC, as its financing partner for their first transaction utilising the unitranche product,” Michael Dennis, partner in the direct lending group at Ares Management, said in a statement.

CVC Capital Partners acquired Wireless Logic from ECI Partners and is the first deal from its technology growth fund, CVC Growth Partners, announced in February. It is unclear how much CVC paid for the business but the sale generated a 6.1x return for ECI 9, a 2008-vintage £437 million fund, according to a report from Private Equity International.