Prospect Capital BDC backs twin deals

US-listed BDC Prospect Capital, led by chairman and chief executive John Barry, has provided a total of $293.5 million in first-lien debt financings to two deals.

US business development company Prospect Capital Corporation has backed the refinancing of IWCO Direct, a direct marketing solutions provider, with $265 million of first-lien floating rate debt, according to a statement on Monday.

Minnesota-headquartered IWCO Direct provides direct marketing solutions to direct marketers for acquisition and loyalty programs in the United States. It is the industry’s only fully vertically integrated business model, encompassing data programming and composition forms and insert printing, plastic card embossing, personalisation for complex variable data, creative services, envelope manufacturing, mail sortation, postal optimisation, and disaster recovery.

Jim Anderson, chief executive of IWCO said: “We were impressed with Prospect's ability to rapidly execute on a one-stop, efficient financing solution with a large investment, sole-hold capability.”

Jason Wilson, a managing director at Prospect Capital Management, added: “IWCO Direct impressed us with its customer-centric, ROI-driven marketing solutions as well as its scale, scope, and technological sophistication of operations that are without peer in the direct marketing sector.”

Prospect also announced it had provided $28.5 million of first-lien floating rate debt to support private equity firm TZP Group’s investment in Global Employment Solutions (GES), a speciality staffing solutions provider.

Harris Newman, a managing director at TZP said: “We selected Prospect based on the firm's speed, constructive approach, and industry knowledge from prior financings.”

Ben Harris, a vice president of Prospect Capital Management, added: “GES has delivered robust revenue growth and maintains an attractive market position in the growing IT and professional staffing markets. The accelerated timeframe to complete this transaction demonstrates how Prospect differentiates itself through responsive service and flexible structuring solutions to our private equity firm relationships.”

Prospect has closed more than $738 million of originations during the first quarter of 2014, with further origination activity expected in the coming weeks, the firm said.