Arctic Glacier sale to H.I.G. funded with $85 million mezzanine debt

By Lisa Kerner

Charlotte, N.C., July 30 - Prospect Capital Corp. announced it provided an $85 million senior subordinated loan to support the acquisition of substantially all the assets of Arctic Glacier Income Fund by funds affiliated with H.I.G. Capital.

The new company is named Arctic Glacier Holdings, Inc.

As reported last week, Arctic Glacier has completed the $413.35 million sale of substantially all of its business and assets to affiliates of H.I.G. Capital as part of Arctic Glacier's Companies' Creditors Arrangement Act and Chapter 15 bankruptcy cases.

The company said a portion of the cash proceeds received at closing was used to satisfy all amounts owed to Arctic Glacier's existing secured lenders. The remainder of the proceeds is being held by CCAA court-appointment monitor Alvarez & Marsal Canada Inc.

Arctic Glacier said previously it expected the remaining proceeds to be sufficient to pay all of its known unsecured creditors and possibly sufficient to allow a distribution to its unitholders after all unsecured creditor claims have been proven and satisfied.

Arctic Glacier, a Winnipeg, Man.-based producer, marketer and distributor of packaged ice, filed for bankruptcy on Feb. 22 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 15 case number is 12-10603.

H.I.G. is a Miami-based private equity investment firm.

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