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Behrman pays dividend in defense recap

The New York and San Francisco firm will enjoy a $337.5m recapitalisation of its defense and homeland-security portfolio company, ILC Industries, returning 1.5 times the equity invested by the buyout firm in 2003.

Behrman Capital, the New York- and San Francisco-based buyout firm, has recapitalised portfolio company ILC Industries in a transaction valued at $337.5 million.

ILC Industries, based in Bohemia, New York, provides microelectronic components for the aerospace and defense industries, as well as softgood materials to the space, military and homeland security industries.

Behrman Capital acquired ILC in 2003 in a $303 million deal.

The recapitalisation will lead to a distribution to Behrman Capital that will return more than 1.5 times the initial equity invested, according to a press release.

The recap involves a $195 million first-lien loan, a $77.5 million second-lien loan, a $35 million subordinated loan and a $30 million unfunded revolving credit facility. UBS and GE Capital led the transaction.

The recapitalisation is “a testament both to ILC’s strong performance and to its potential for further growth,” said Grant Behrman, managing director and co-founder of Behrman Capital, in a statement.

Behrman Capital, founded in 1992 by Grant and Darryl Behrman, now manages roughly $1.8 billion in capital. Darryl Behrman passed away in 2002.