Daily News: May 8, 2013

Kayne Anderson, Comvest Provide Term Loan to Support RMG Merger

Kayne Anderson Middle Market Credit, the private credit platform of Kayne Anderson Capital Advisors, and Comvest Partners provided a $24 million term loan to SCG Financial Acquisition (d/b/a RMG Networks) to fund the business combination of Reach Media Group Holdings (RMG), a digital signage media and technology company, and Symon Communications Holdings, a global provider of enterprise-class digital signage solutions.

The deal was led and agented by one of Kayne’s middle-market lending funds, Kayne Senior Credit Fund, L.P. Comvest Partners, through its fund Comvest Capital II L.P., provided $8 million of the $24 million term loan.

The combination of RMG and Symon creates a digital signage media company that offers intelligent visual technology solutions to enterprise customers and leadership in digital place-based media to advertisers. RMG Networks now has more than 7,500 customers including approximately 70% of the Fortune 100, a majority of the Fortune 500, and over 1 million installed screens.

Ken Leonard, managing partner, Kayne Senior Credit Fund, L.P. said, “The transaction represented a unique opportunity to finance two industry leading companies with niche focuses in defensible markets. We are delighted to have closed the transaction and look forward to working with the company in meeting future growth needs.”

Dan Lee, managing director, Comvest Partners, said, “We were impressed by both RMG and Symon, and particularly by the quality of their management teams. This was an opportunity to support Mr. Sachs and Kayne Anderson, who we have known for years and think very highly of. We look forward to supporting the business with additional capital and building a very productive relationship with Kayne Anderson over the years.”