Ares Capital Corporation Leads New Senior Debt Financing for Blacksmith Brands

November 2, 2009 8:00 AM EST

Consumer Products Industry Veterans to Unlock Value in Portfolio of Established Over-the-Counter Brands

NEW YORK--(BUSINESS WIRE)-- Ares Capital Corporation (NASDAQ: ARCC) announced today that it structured and lead arranged a $65 million senior secured debt financing for Blacksmith Brands, Inc., a newly formed consumer products company backed by Charlesbank Capital Partners LLC. Ares Capital's investment in the senior secured debt is $32.5 million. The proceeds will be used in Blacksmith Brand's acquisition of five over-the-counter consumer product brands from McNEIL-PPC, Inc.

"We are confident in the ability of Blacksmith Brands' proven, experienced management team to unlock additional value in its portfolio of branded consumer products as they execute on the company's growth strategy," commented Michael Smith, Partner of Ares Capital. "We are also excited to close another deal with our valued private equity sponsor client, Charlesbank Capital Partners."

"I am delighted to be partnering with Ares Capital," Peter Mann, Chairman and CEO of Blacksmith, commented. "Its financial support and institutional industry knowledge will better enable us to execute on our significant growth plans for the business."

"Ares Capital's creativity, speed and industry experience made the firm a natural partner for us in our formation of Blacksmith Brands," Andrew Janower, Managing Director of Charlesbank Capital Partners, said. "Ares Capital's ability to lead the financing and structure a one-stop, single security solution set the firm apart from others--which is especially relevant given the current difficulties in today's financing marketplace."

"This transaction is a good example of the current opportunity we have at Ares to take advantage of the attractive investing environment in the new-issue market," commented Michael Arougheti, President of Ares Capital Corporation. "Our platform is well positioned for today's credit market environment, and we are in a strong position to continue providing one-stop financing to leading middle market companies as well as their sponsors."

About Blacksmith Brands Inc.

On October 29, 2009, Charlesbank Capital Partners announced the formation of Blacksmith Brands, Inc. with the acquisition of five over-the-counter consumer products brands from McNEIL-PPC, Inc. Blacksmith acquired the following branded consumer products: EFFERDENT(R) denture cleaner, EFFERGRIP(R) denture adhesive cream, LUDEN'S(R) throat drops, PEDIACARE(R) children's cough and cold medicine and PEDIACARE(R) Gentle Vapors waterless vaporizer, and NASALCROM(R), a nasal allergy relief spray. Blacksmith was created in partnership with 35 year industry veteran and former Chief Executive Officer of Prestige Brands, Peter Mann, who will serve as Chairman and CEO. Mr. Mann and his senior management team at Blacksmith have worked together for more than 20 years, building numerous over-the-counter brands.

About Charlesbank Capital Partners

Charlesbank Capital Partners, LLC is a middle-market private equity investment firm managing more than $2 billion of capital. Charlesbank focuses on management-led buyouts and growth capital financings, typically investing $50 million to $100 million per transaction in companies with enterprise values of $100 million to $750 million. The firm seeks to partner with strong management teams to build companies with sustainable competitive advantages and excellent prospects for growth. For more information, visit www.charlesbank.com.

About Ares Capital Corporation

Ares Capital Corporation is a specialty finance company that provides integrated debt and equity financing solutions to U.S. middle-market companies. Ares Capital Corporation invests primarily in first- and second-lien loans and mezzanine debt, which in some cases includes an equity component. To a lesser extent, Ares Capital Corporation also makes equity investments. Ares Capital Corporation is externally managed by Ares Capital Management LLC, an affiliate of Ares Management LLC, an SEC registered investment advisor and alternative asset investment management firm with approximately $30.0 billion of committed capital under management as of September 30, 2009. Ares Capital Corporation is a closed-end, non-diversified management investment company that has elected to be regulated as a Business Development Company under the Investment Company Act of 1940. For additional information, please visit our website at www.arescapitalcorp.com.

FORWARD-LOOKING STATEMENTS

Statements included herein may constitute "forward-looking statements," which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Ares Capital Corporation's filings with the Securities and Exchange Commission. Ares Capital Corporation undertakes no duty to update any forward-looking statements made herein.

    Source: Ares Capital Corporation

Related Categories

Press Releases

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?