Daily News: May 14, 2012

THL Credit Closes Three New Investments


THL Credit, Inc. announced that it recently participated in three new investment transactions — the recapitalization of Martex Fiber Southern Corp., the recapitalization of Innovative Medical Device Solutions, Inc. (IMDS) and acquisition financing for YP Holdings LLC (Yellow Pages). THL Credit invested in each transaction together with its managed fund, THL Credit Greenway Fund LLC.

RECAPITALIZATION OF MARTEX

THL Credit participated in the refinancing of Martex by Milestone Partners, providing subordinated debt capital as part of the acquisition. Based in Spartanburg, SC, with offices in Philadelphia, PA, Martex is a recycler of pre-consumer textile waste in the Americas. Martex sources textile waste primarily from large apparel manufacturing cut-and-sew operations. The company converts the waste into higher value remanufactured fibers as well as recycled yarn products. Martex has been producing sustainable and environmentally friendly products since the 1970s.

“By offering high-quality products and services, Martex has developed long-term relationships with its customers and suppliers while garnering a strong reputation in its industry,” said Sam Tillinghast, co-president of THL Credit. “Martex’s dedication to environmental integrity uniquely positions the company for future growth.”

RECAPITALIZATION OF IMDS

THL Credit participated in the refinancing of IMDS, a portfolio company of Arsenal Capital Partners, providing subordinated debt capital. Headquartered in Fort Worth, TX, IMDS is a provider of comprehensive outsourcing solutions for orthopedic and medical device companies, including the development of orthopedic implants and instruments.

“We are pleased to support Arsenal and the management team of IMDS as they continue to grow and execute on IMDS’ unique market strategy. As a one-stop partner to orthopedic OEMs, IMDS’ unparalleled co-innovation and manufacturing capabilities provide a clear competitive edge over its peers,” said Chris Flynn, managing director of THL Credit.

ACQUISITION FINANCING FOR YELLOW PAGES

THL Credit provided debt financing for the acquisition of YP Holdings by Cerberus Capital Management, L.P. Operating in 22 states, Yellow Pages provides ad space to local and national businesses in U.S. print directories and through online and mobile (YP.com) platforms.

THL Credit is an externally managed, non-diversified closed-end management investment company that invests primarily in junior capital securities, including subordinated debt and second lien secured debt, which junior capital may include an associated equity component such as warrants, preferred stock or other similar securities.