Prospect BDC recapitalises mobile cleaning service

The US-listed business development company (BDC) has lent $65m to Fleetwash, a national provider of mobile cleaning services for truck fleets.

US business development company Prospect Capital Corporation has provided a $65 million floating-rate credit facility to Fleetwash, a cleaning service for mobile vehicles, it said in a statement on Monday.

The first lien loan is the second transaction between Prospect and Fleetwash and supports the recapitalisation of the business by private equity sponsor DFW Capital Partners and Fleetwash’s senior management.

DFW and Fleetwash’s management also made an equity investment in Fleetwash Holdings, the parent company for Fleetwash, to acquire the business from its current institutional investors, as announced in a separate statement from DFW on Monday. JP Morgan provided debt financing in the transaction.

Fleetwash, which is headquartered in Fairfield, New Jersey, operates a network of mobile fleet and facility washing operations in 44 states. It serves large industrial, retail, restaurant, commercial, petroleum station and other facilities.

Keith Pennell, managing partner at DFW Capital, commented: “Prospect provided a responsive and thoughtful financing package well-tailored to the unique needs of the business, which was a valuable contribution to the success of this transaction.”

Seth Tutlis, vice president of Prospect, said: “Fleetwash brings a long history of providing strong customer service and presents an attractive investment opportunity for DFW Capital and Prospect,” adding, “We are delighted to support DFW Capital and the Fleetwash team, and we look forward to continuing to build the relationship.”

Prospect currently has more than $7 billion of capital under management and has closed approximately $3.3 billion of new originations during the year ended 31 March 2014.

DFW made its latest investment in Fleetwash through its most recent fund, DFW Capital Partners IV.