Prospect Capital Corporation, the US business development company, has provided a $210 million first lien senior secured credit facility to support the recapitalisation of a food services company owned by private equity firm HIG Capital.
Jeff Zanarini, managing director at HIG, commented in a statement: “In this case, a creative approach and accelerated time table convinced us to select Prospect over the syndicated capital markets.”
The financing to the unnamed firm is the ninth time in the last two years that Prospect has invested more than $100 million in a single transaction. The NASDAQ-listed company has closed approximately $2 billion of new originations so far this year.
Jason Wilson, managing director at Prospect, said: “We are pleased to provide financing to HIG for this industry leading company. This transaction further demonstrates Prospect’s ability to lead, agent, and hold significantly sized transactions. Prospect's focus on middle-market and larger companies enables Prospect to compete with syndicated debt markets and to provide creative capital financing to our private equity sponsor and other relationships.”
Prospect provides investments of between $10 and $500 million to companies with $5 to $250 million of EBITDA. It has made more than 130 middle-market debt and private equity investments. The firm has over $7 billion in assets and available credit and employs more than 100 professionals.