| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers W > Headlines for Web Service Co. > News item |
Web Service closes on $50 million of mezzanine debt with Ares from $100 million facility
By Stephanie N. Rotondo
Portland, Ore., Sept. 9 - Web Service Co. closed on $50 million of senior subordinated notes with Ares Capital Corp., part of a $100 million total note facility.
Proceeds from the mezzanine debt will be used to help fund Code Hennessy & Simmons LLC's purchase of Web Service.
Carl Drake of Ares Capital said that other investors put up the remaining $50 million of the facility. He declined to give the terms of the new bonds, but added that details might be included in the company's next 10-Q filing.
"We are pleased to be partnering with the management of Web Service and CHS," said Mark Affolter, managing director of Ares Capital, in a press release. "This represents the second investment out of our recently opened Chicago office, both of which have been with CHS."
"Ares Capital's speed, industry knowledge and flexible financing made them a natural partner for us in our acquisition of Web Service," added Richard Lobo, partner of CHS.
Financing also includes a $235 million credit facility, made up of a $50 million six-year revolver and a $185 million six-year term loan.
Pricing for both tranches was increased to Libor plus 500 basis points from Libor plus 450 bps and the original issue discount widened to 97 from 98, according to a market source.
As before, the facility includes a 3% Libor floor.
GE Capital is the lead bank on the deal.
Senior leverage is around 3.1 times and total leverage is around 4.97 times.
Web Service is a Redondo Beach, Calif., laundry service provider, serving multi-housing locations, including apartment properties, condos, college and university residence halls and military bases.
Ares Capital is a New York-based closed-end, non-diversified management investment company. Code Hennessy is a Chicago-based private equity firm.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.