Monroe Capital Provides $26.5 Million to Berkshire Blanket Holdings, Inc. to Fund Buyout Transaction
Chicago, IL, February 22, 2006
Monroe Capital LLC announced the funding of a $26.5 million term loan to Berkshire Blanket Holdings, Inc. in connection with the acquisition of Berkshire Blanket, Inc. by New York-based private equity investment firm, Cordova, Smart & Williams, LLC. Monroe Capital’s loan facility was structured as a $15 million term A loan and a $11.5 million term B loan and were used together with a $25 million revolving line of credit provided by Wachovia Capital Finance Corporation in order to complete the buyout. The Monroe term loan facility was tailored to provide the maximum amount of debt possible for this transaction and to specifically meet the needs of both the private equity firm buyer and the sellers who continue to retain a meaningful role in the business.
Theodore L. Koenig, President & CEO of Monroe Capital, said “We were very impressed by what the current management of Berkshire Blanket had accomplished to date and felt that with the addition of Mike Smart and the rest of the Cordova, Smart and Williams team that had been assembled, this company was poised to achieve rapid growth and continued excellent profitability.” In addition, Koenig added, “This transaction would not have been possible without the work of SunTrust Robinson Humphrey and specifically, Craig MacKay. They really added value when called upon. It was a privilege to work with such a professional organization.”
Mr. Koenig noted that in the past 12 months, an increasingly large number of the financings undertaken by Monroe Capital have involved private equity sponsored companies. Koenig stated, “We think we have created the ideal financial product for private equity sponsors. It is a very flexible term loan A and B debt instrument that combines the maximum amount of leverage possible, flexible repayment terms and absolutely no dilution of ownership. It is ideal for most leveraged buyout transactions. We look forward to doing many more of these types of deals.”
Berkshire Blanket, Inc., headquartered in Ware, Massachusetts, is a designer, importer, and marketer of blankets and throws made from a wide variety of fabrics. The company’s brands include their proprietary Berkshire Blanket and Better Living brand names and the licensed Nautica and Liz Claiborne brand names. Berkshire’s customer base is comprised of several of the top home textile retail chains and other mass merchants, including Bed Bath & Beyond, Linens ‘N Things, TJX, Target, Costco, and Kmart.
Monroe Capital is a specialty finance company devoted to providing innovative capital to middle-market businesses. Monroe Capital specializes in originating, structuring and providing customized financing to corporate, real estate, media and communication, and asset-based borrowers based in the U.S. and Canada in amounts of $3 million to $40 million, with an ability to agent and syndicate larger transactions. These investments include senior and junior secured debt as well as bridge loans to companies in need of immediate access to capital; flexible acquisition facilities for acquirers of opportunistic assets; mezzanine or last-out second loans that stretch a company’s debt capacity; acquisitions of distressed debt; and equity co-investments. Monroe Capital prides itself on its flexible investment approach and its ability to close and fund transactions quickly. To learn more about Monroe Capital, visit www.monroecap.com.