Wellspring Capital Management has completed a recapitalisation of portfolio company API Heat Transfer, which includes a $300 million first-lien credit facility, according to a statement from the firm.
UBS Securities, RBC Capital Markets and GE Capital worked as lead arrangers on the deal. They were also joint bookrunners for the credit facility.
The credit facility will be used to pay investors a dividend and to pursue growth opportunities and select acquisitions, according to the statement.
“The company’s enhanced capital structure enables it to return capital to investors while pursuing a range of attractive growth opportunities,” said Wellspring managing partner William Dawson in a statement.
API Heat Transfer designs and manufactures industrial heat exchangers. Wellspring acquired the Buffalo, New York-based company – which also has manufacturing facilities in China and Germany – last April. Terms of the transaction were not disclosed.
Wellspring’s $1.2 billion 2011 vintage vehicle was generating a 0.86 total value multiple as of 30 September, according to Oregon Public Employees Retirement Fund documents. That vehicle’s predecessor had generated a 7.4 percent net internal rate of return and 1.35x total value multiple.
Wellspring is led by managing partners Greg Feldman, Dawson and Carl Stanton. The firm manages approximately $3 billion in private equity capital and can complete transactions of $50 million to $2 billion in total value.