Investment management firm Ares Capital has closed three debt financing commitments totalling more than USD110m with funded investments at closing of over USD80m.
Ares Capital served as co-lead arranger for the senior secured debt financing for The Paradies Shops, an independent, family-owned and managed operator of over 500 airport retail stores in more than 70 markets across the US and Canada.
The financing was used to support the majority acquisition of The Paradies Shops by financial sponsor Freeman Spogli. Ares Capital committed approximately USD70m in the facility, approximately USD40m of which was initially funded. This transaction represents Ares Capital’s third investment in the airport retail industry.
Separately, Ares Capital provided debt financing to support the acquisition by financial sponsor Lee Equity Partners of Papa Murphy’s, a franchisor of branded Take ‘N’ Bake pizza stores with over 1,150 stores in 35 states as well as Canada. Ares Capital invested approximately USD23.5m in the senior secured credit facility.
Finally, Ares Capital provided USD20m in senior subordinated debt financing to US Renal Care to support its acquisition of Dialysis Corporation of America. US Renal Care is majority owned by SV Life Sciences, Thoma Cressey Equity Partners, Salix Ventures and Select Capital. Following the acquisition, US Renal Care is the sixth largest dialysis company in the US. Ares Capital’s USD20m commitment was part of a USD40m senior subordinated term loan.
"These three financings demonstrate our continued commitment to actively deploy capital into high-quality middle market companies that have attractive risk/reward profiles," says Michael Arougheti, president of Ares Capital. "We are excited to be supporting highly experienced investors within these industry verticals."
