$53 Million in Sponsorless Mezzanine Deals Funded by Prudential Capital Partners, L.P.Business Editors CHICAGO--(BUSINESS WIRE)--Nov. 6, 2002 Diverse Deals Generated by Prudential Capital Group's Regional Office Network Prudential Capital Partners, L.P., announced today that it has recently financed a total of $53 million in three unique sponsorless mezzanine transactions. These financings now bring the amount invested by Prudential Capital Partners, L.P., to $223 million since its close July 2001. The most recent investments, which closed in October, were originated through Prudential Capital Group's regional offices in Atlanta, Chicago, and San Francisco. Each of the deals illustrates Prudential Capital Partners, L.P.'s capacity to meet the diverse, growth-driven funding requirements of middle-market companies: a one-stop shop One-Stop Shop A company or a location that offers a multitude of services to a client or a customer. The idea is to provide convenient and efficient service and also to create the opportunity for the company to sell more products to clients and customers. growth financing, a recapitalization and an acquisition financing, respectively. "The last 18 months have been very sluggish in the leveraged buyout leveraged buyout, the takeover of a company, financed by borrowed funds. Often, the target company's assets are used as security for the loans acquired to finance the purchase. market; therefore, we have been focused on strong companies that are capital constrained by tightening bank credit standards Credit Standards The guidelines a company follows to determine whether a credit applicant is creditworthy. . In fact, five out of the eight deals the fund has closed this year were growth, acquisition or recapitalization transactions," said Jeff Dickson, principal, Prudential Capital Partners, L.P. "It's our regional office network that's uncovered and delivered these sponsorless deals. We have the sourcing and regional deal management resources to sponsor these deals directly, often times on a one-stop basis where we provide senior debt as well as mezzanine and some equity." The first of the three deals provided Yanoor Corporation, a full service rug manufacturer of accent rugs, room sized rugs, upscale and basic bath rugs and sets, located in Atlanta, Ga., a $25 million one-stop, sponsorless private placement. The proceeds were used as growth financing for the company. Prudential Financial's General Account funded the revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. The second, a $20 million sponsorless financing of subordinated, fixed-rate notes with attached warrants, funded the recapitalization of Engineered Machined Products (EMP EMP abbr. electromagnetic pulse ), Inc., a leading contract manufacturer of diesel engine parts, located in Escanaba, Mich. Tunstall Consulting was the financial adviser. The third, a $23 million sponsorless financing of subordinated, fixed rate notes with attached warrants funded the acquisition of Rocky Mountain Holding, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , located in Provo, Utah, by Air Methods Corporation, a leading provider of emergency aeromedical aer·o·med·i·cine n. The medical study and treatment of physiological and psychological disorders associated with atmospheric or space flight. Also called aerospace medicine, aviation medicine. transportation, medical services and technology, located in Englewood, Colo. CIBC CIBC Canadian Imperial Bank of Commerce CIBC Centres Interinstitutionnels de Bilan de Compétences CIBC Commonwealth Institute of Biological Control (Trinidad) CIBC Commercial International Brokerage Company was the agent on the transaction. Prudential Capital Group and Prudential Capital Partners, L.P. are institutional investment management businesses of Prudential Financial, Inc., (NYSE NYSE See: New York Stock Exchange :PRU PRU Prudential Financial PRU Pupil Referral Unit PRU Photographic Reconnaissance Unit PRU Potomac Rugby Union (Washington, DC) PRU Provincial Reconnaissance Unit PRU Projets de Rénovation Urbaine PRU Pruhonice ). In July 2001, Prudential Capital Partners, L.P., headquartered in Chicago, Ill., closed its $619 million middle-market mezzanine fund with 21 diverse investors. Since that time, it has invested in 13 mezzanine transactions: seven sponsorless and six one-stop shop financings, and has $396 million remaining to invest. Prudential Capital Group has been a leading provider of private capital for more than 60 years, investing in investment grade, mezzanine and below-investment grade private debt on behalf of Prudential Financial's General Account and various institutional investors. Year to date, Prudential Capital has originated a total of $3.5 billion through its regional office network locations in New York, Atlanta, Dallas, Chicago, San Francisco, and London, and is headquartered in Newark, N.J. Prudential Financial companies, with approximately $533 billion in total assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. and administration as of September 30, 2002, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the U.S. These companies offer a variety of products and services, including life insurance, property and casualty insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, banking and trust services, real estate brokerage franchises and relocation services. For more information, visit www.prudential.com. |
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