Daily News: January 9, 2012

Ares Capital Leads Financing Deals Totaling More Than $640MM


Ares Capital said investment transactions closed in Q4/11 included three financing commitments to new portfolio companies totaling more than $640 million. Ares Capital served as administrative agent in all three transactions.

Ares Capital served as administrative agent, lead arranger and bookrunner in a senior secured credit facility to support the refinancing of Grocery Outlet by Berkshire Partners. Grocery Outlet is an extreme-value grocery retailer with over 170 stores in the United States.

In addition, Ares Capital served as administrative agent in a second lien term loan to support the acquisition of Essent Healthcare by RegionalCare Hospital Partners, an existing portfolio company of Warburg Pincus. Pro forma for the acquisition, RegionalCare owns and operates seven market-leading, non-urban hospitals across six states.

Ares Capital also served as administrative agent, lead arranger and bookrunner in a senior secured credit facility to support the acquisition of WorldStrides by The Carlyle Group. WorldStrides is the nation’s largest student travel organization.

Michael Arougheti, president of Ares Capital, commented, “We are very pleased to have partnered with three high-quality private equity investors and their franchise businesses. These transactions demonstrate that our flexible capital as well as our ability to lead and commit significant dollars is resonating among sponsors seeking reliable and large-scale capital solutions in the middle market.”