Prospect Capital BDC backs IT outsourcing firm after M&A

US-listed BDC Prospect Capital Corporation has provided a senior debt package to Clearlake Capital-owned Tolt Solutions

US business development company Prospect Capital Corporation has provided a first-lien senior secured debt package to private equity firm Clearlake Capital Group to support the growth of newly formed Tolt Solutions, a retail-focused IT services company.

The move comes several months after Clearlake acquired Tolt Service Group and merged it with Kyrus Solutions to form Tolt Solutions, creating the largest independent North American service provider of point-of-sale, self-service and wireless mobility solutions to the retail industry.

It is also the second transaction to take place between Prospect and Clearlake in the past four months.  In December 2013, the lender provided a senior secured floating rate loan facility to support the acquisition of PrimeSport by investment funds managed by Clearlake Capital.

“We selected Prospect based on the speed, constructive approach, and certainty of closing that we experienced working with Prospect in our previous financing,” Behdad Eghbali, partner at Clearlake Capital, said in a statement announcing the deal.

Jason Wilson, managing director at Prospect Capital Management added: “This transaction is another example of the repeat relationships that Prospect develops with its private equity clients through responsive service and flexible capital structure solutions.”

Prospect has closed nearly $400 million of originations during the current March 2014 quarter, with further origination activity expected in the current quarter and the coming months, it said in a statement.

The firm closed about $2.7 billion (€1.9 billion; £1.6 billion) of new originations during 2013.