Monroe backs Versa software deal

The Chicago-based lender is backing Versa Capital’s BCC Software spin-out with a senior secured credit facility.

Mid-market lender Monroe Capital has provided a senior secured credit facility to support the spin-off of BCC Software from its former parent, communications group Bell and Howell, by private equity sponsor Versa Capital Management.

The Chicago-based lender has backed the transaction with a new revolving credit facility (RCF) and term loan. Financial details were not disclosed.

Based in New York, BCC Software creates postal software solutions and provides data marketing services. Bell and Howell purchased the firm in 2005. With the spin-off, BCC now becomes an independent company, although Versa will hold separate controlling majority interests in both companies.

Ramesh Ratan, chief executive of Bell and Howell, said in a statement that the transaction had enabled Bell and Howell to retire 100 percent of its outstanding debt under its secured credit facility with UK-based asset based lender PNC Business Credit and mid-market lender Crystal Financial.

“BCC Software as an independent business will benefit from the focus, oversight and capitalization that come with being a free-standing business. This transition stands to make the two independent businesses stronger while BCC remains an important strategic partner with Bell and Howell as we work closely to create new services and solutions for our customers,” Ratan said.