American Capital attempting club-style syndication of $84 million credit facility backing Soil Safe LBO

By Paul A. Harris

St. Louis, Oct. 1 - American Capital Strategies, Inc. is shopping an $84 million credit facility backing the LBO of Soil Safe Holdings, Inc., according to market sources.

American Capital is attempting to privately syndicate the deal, according to one source who follows the middle market placements.

"It's a trend to do these deals without intermediaries," the source said, adding that the tendency in such transactions is for the private equity sponsor go directly to money managers with track records of becoming involved in private placements.

The Soil Safe facility is comprised of a $74 million term loan and a $10 million revolver, both talked with a Libor plus 550 basis points area coupon, at an original issue discount of 97.50.

American Capital sold Soil Safe to Lake Capital Partners in a transaction which closed in August.

The $84 million credit facility is part of an overall $141 million of debt financing that American Capital provided for the deal, according to a press release.

Soil Safe is a Columbia, Md.-based company specializing in the recycling of soils contaminated with a variety of petroleum products and heavy metals.

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