Daily News: November 22, 2013

LCA Receives $20MM Commitment From Virgo Investment

Lease Corporation of America said it has closed on an investment commitment of $20 million from Virgo Investment Group. The transaction will refinance current indebtedness, allow partial liquidity to select, existing shareholders and provide growth capital.

John B. Kemp, chairman and CEO of LCA said, “We have been searching for a relationship to furnish liquidity for our shareholders while allowing the retention of effective control; restructure our long term debt; and provide growth capital. During this process we have met with many accomplished firms, a significant number of whom offered possible solutions. After careful study and analysis and extensive interaction with Jesse Watson and Mack McNair of Virgo, LCA came to the conclusion that Virgo, with its creative capacities, financial strength, and extensive connections, was the answer.”

Virgo partner Mack McNair, who leads Virgo’s specialty finance practice, noted, “Our LCA investment is the culmination of a two year proactive sourcing project in the equipment leasing space. We believe that the LCA transaction is a good example of how flexible capital and creative transaction structuring allows Virgo to create unique opportunities that are differentiated from traditional credit or control oriented equity investors. We are proud to support LCA co-founder, chairman & CEO John Kemp, his team and existing shareholders in the next phase of growth in the business and believe there are multiple avenues of profitable expansion that leverage the strong foundation that LCA has built over the last 25 years. We believe that high quality originators and underwriters like LCA will be increasingly well positioned for growth, origination partnerships and other strategic alternatives.”

Based in Troy, MI, LCA specializes in technology and industrial equipment financing. Virgo is a private investment firm with committed and raised capital of more than $600 million.