NEW YORK--(EON: Enhanced Online News)--The Senior Direct Lending Program (SDLP), a joint venture between Ares Capital Corporation (Ares Capital) and Varagon Capital Partners (Varagon), is pleased to provide an update on its investment activities in the fourth quarter of 2016.
SDLP provided financing solutions to five companies in the quarter, representing aggregate new financing commitments of approximately $390 million.
Including these investments, SDLP has provided financing to 14 borrowers and 16 financial sponsors since its formation in mid-2015. SDLP has nearly $3 billion of investment capacity, in addition to any investments Ares Capital and Varagon may make alongside SDLP.
Below is additional information about two of the investments completed in the fourth quarter:
Triwater Holdings / Edgewater Capital & JZ Partners
Ares Capital and Varagon served as joint lead arrangers and joint bookrunners for a senior secured credit facility to support the recapitalization of Triwater, a portfolio company of Edgewater Capital and JZ Partners. Triwater is a uniquely positioned holding company focused on improving water-use integrity by providing water filtration systems, water treatment solutions and waterline renewal technologies, offering a diverse selection of products and related services across three distinct verticals. Ares Capital has been a lender to Triwater since 2014.
Arrowhead Electrical Products / The Riverside Company
Ares Capital and Varagon served as joint lead arrangers and joint bookrunners for an incremental term loan to support the acquisition of Stens by Arrowhead Electrical Products. Stens distributes aftermarket replacement parts to the outdoor power equipment, golf, and industrial end markets. Its offerings include non-discretionary, high-wear parts, including engine components, blades, chains, belts, and electrical components for use in mowers, chainsaws, snow blowers, trimmers, and other applications. Arrowhead Electrical Products is a leading supplier of non-discretionary, mission-critical aftermarket replacement parts for a wide variety of motorized vehicles. Arrowhead Electrical Products has been an SDLP borrower since 2015 and is a portfolio company of The Riverside Company.
About the Senior Direct Lending Program
SDLP provides senior secured loans to middle market companies, including stretch senior and unitranche loans, and has a hold size of up to $300 million. SDLP lends to borrowers across industries and offers large commitments, speed and certainty of closing, and simplicity of documentation. SDLP is a joint venture between Ares Capital Corporation and Varagon Capital Partners.
About Ares Capital Corporation
Ares Capital is a leading specialty finance company that provides one-stop debt and equity financing solutions to U.S. middle market companies, venture capital backed businesses and power generation projects. Ares Capital originates and invests in senior secured loans, mezzanine debt and, to a lesser extent, equity investments through its national direct origination platform. Ares Capital’s investment objective is to generate both current income and capital appreciation through debt and equity investments primarily in private companies. Ares Capital has elected to be regulated as a business development company (“BDC”) and as of December 31, 2016, was the largest BDC by total assets and market capitalization. Ares Capital is externally managed by a subsidiary of Ares Management, L.P. (NYSE:ARES), a publicly traded, leading global alternative asset manager. For more information about Ares Capital, visit www.arescapitalcorp.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.
About Varagon Capital Partners
Varagon is a direct lender that offers a broad suite of competitive, reliable financing solutions to middle market companies. Varagon lends across the capital structure through relationships with financial sponsors and borrowers. Varagon’s investments are funded by commitments from investors seeking exposure to quality, directly-originated middle market loans. Varagon has nearly $4 billion of capital available for investment and, as of December 31, 2016, had approximately $2.6 billion of assets under management. For more information about Varagon, visit www.varagon.com.