NewSpring announces three mezz exits

At its current investment pace, the firm expects to return to market in late 2014 or early 2015.

NewSpring Capital announced three exits from its mezzanine vehicle on Wednesday. Terms of the transactions were not disclosed.

The exits – the result of refinancings of NewSpring’s subordinated debt investments in the companies – created a “terrific outcome for investors,” said NewSpring general partner Steve Hobman in a statement.

The firm has held its positions in the three companies – Climax Manufacturing Company, Archive Systems and York Telecom – for between three and five years. In 2008, the firm funded $5 million of mezzanine capital for Climax Manufacturing and provided York with a $4.6 million term loan. A portion of those two loans had already been returned prior to exit, according to investor relations director Michael DiMartile.

NewSpring backed Archive for an undisclosed amount in 2010.

All three investments were made through the firm’s 2005 vintage fund. That fund has four investments remaining it its portfolio.

The firm is still in the process of investing its second mezzanine fund, a 2010 vintage vehicle, DiMartile told Private Debt Investor.

 “We are wholly focused on the existing portfolio and investing Mezz II,” he said, adding that the firm expects to return to market at the end of 2014 or early 2015. “Coming back to market is really predicated on that continuing according to plan.”

NewSpring’s mezzanine business typically invests between $5 million and $25 million per transaction in sponsored and non-sponsored companies. Although the firm classifies itself as agnostic as it pertains to industry focus, it does have experience in the business and consumer services, healthcare, niche manufacturing and technology sectors.