American Capital Strategies Ltd, announced today that it has committed $300 million to Core Business Credit, a newly-formed commercial finance company that will provide asset-based financing to middle market companies nationally. American Capital's investment takes the form of subordinated debt and equity.
Core's senior management team members, consisting of Michael Haddad, President and Chief Executive Officer, and Executive Vice Presidents Milton Iskra, Paul Martin and Ken Cichocki, are also investing alongside American Capital. In addition, Core has secured a $125 million senior credit facility with Autobahn Funding Company, LLC, an asset-backed commercial paper conduit sponsored by DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. This makes Core's total committed capitalization in excess of $425 million.
INFO SOURCES
American Capital Strategies Ltd. (ACAS)
FIRMS
Based in Dallas, Core plans predominately to make asset-based loans secured by accounts receivable, inventory, equipment and owner-occupied real estate. It will also provide warehouse and rediscount loans as well as senior stretch loans to its customers. Core is targeting customers with annual revenues of $35 million to $500 million, at least one fiscal year of operating history and financing needs of $7.5 million to $30 million, with larger facilities syndicated.
The American Capital Financial Services Group offers capital solutions for consumer and commercial finance, insurance and asset management companies. The Group invests throughout the capital structure, including senior debt, subordinated debt and equity, and can make investments of up to $800 million in each transaction.
PEOPLE
Bob Grunewald, Managing Director, American Capital Financial Services Group
Michael Haddad, CEO of Core
NOTE
American Capital has invested directly and through its funds under management approximately $9.2 billion in the last twelve months, $2 billion year to date and $870 million quarter to date. Not including funds under management, American Capital has invested approximately $7.1 billion in the last twelve months, $1.6 billion year to date and $640 million quarter to date. American Capital assisted in the refinance or syndication of approximately $2 billion of senior debt for its portfolio companies in the last twelve months, $356 million year to date and $55 million quarter to date.
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