Daily News: March 8, 2013

ORIX Arranges Sprinkles Cupcakes Debt Facility

ORIX Leveraged Finance announced the closing of a debt facility with Sprinkles Cupcakes. The debt facility supports an investment in Sprinkles by KarpReilly and will provide for the company’s future growth initiatives. ORIX Leveraged Finance served as lead arranger, administrative agent and sole lender.

Beverly Hills, CA-based Sprinkles owns and operates 11 cupcake bakeries, with plans to add a number of additional locations in both new and existing markets. Over the past year, the company also has successfully introduced its new Sprinkles Ice Cream offering and entered into its first international franchising agreement.

The financing facility underscores the commitment of ORIX to provide acquisition and growth capital to well-managed privately held companies that offer a compelling product or service, and possess long-term franchise value.

John Lenocker, co-head of ORIX Leveraged Finance, said, “We’re excited to team up with KarpReilly, a leading financial sponsor with significant growth company expertise, and Candace and Charles Nelson, experienced entrepreneurs poised to continue the success of Sprinkles. We look forward to supporting this great team and brand through the next phase of growth.”

“ORIX Leveraged Finance was responsive in working with us to develop a flexible structure that will enable Sprinkles to take advantage of the many opportunities available to the brand,” said Allan Karp, founder, KarpReilly.

ORIX Leveraged Finance provides debt and equity capital to well-managed small and mid-sized businesses.

KarpReilly is a private investment firm that partners with small to mid-size growth companies.