LBC issues $60m in Holley add-on, recap

Monomoy will use proceeds from the loan to fund a bolt-on acquisition and carry out a dividend recap, as the issuer, LBC Credit, looks to raise $650m for its Credit Partners III vehicle.

LBC Credit Partners has provided a $60 million senior secured term loan to Monomoy Capital Partners portfolio company High Performance Industries (AKA Holley), the firm said on Tuesday.

Proceeds from the loan were used to increase an existing credit facility for the bolt-on acquisition of Quick Fuel Technology, as well as fund a dividend recapitalisation, according to the statement.  LBC, along with Wells Fargo, had also provided financing for Monomoy’s original acquisition of auto parts manufacturer Holley last June.

LBC and Monomoy did not respond to a request for comment.

LBC is in the market with its third 'Credit Partners' fund, which had raised $297 million towards a $650 million target as of 28 December, according to US Securities and Exchange Commission filings. LBC had also raised an additional $27.7 million through a parallel vehicle as of early January.

The firm’s $645 million 2008 vintage fund had generated a 10.8 percent net IRR, according to a 7 September Portfolio Advisors memo to the Pennsylvania Public School Employees’ Retirement System.

LBC provides senior term, unitranche, second lien, junior secured and mezzanine loans to mid-market companies across a variety of North American industries. The firm generally invests between $10 million and $50 million per transaction, which can include buyouts, recapitalisations, refinancings and restructurings, it said. 

LBC was founded in 2005 by partners John Brignola, Chris Calabrese, Nate Cohen and Ira Lubert. The firm maintains offices in Philadelphia, New York City and Chicago and oversees $1.25 billion in committed capital.