First Capital Raises $139 Million in Common Equity and Completes a $100 Million Term Securitization
STRONG BALANCE SHEET POSITIONS FIRST CAPITAL TO INCREASE LENDING TO SMALL AND MID-SIZED COMPANIES
BOCA RATON, Fla. May 19, 2010 – First Capital, a leading commercial finance company, today announced that it recently completed two important transactions that position it to increase lending to small and mid-sized growth companies.
H.I.G. Capital, LLC, a leading global private equity firm, has just completed a $139 million investment in First Capital which doubles the company’s common equity base. On May 18th, an affiliate of H.I.G. purchased a majority stake in First Capital’s common stock. H.I.G. was joined by funds advised by Morgan Stanley Alternative Investment Partners and funds advised by JP Morgan Asset Management.
Guggenheim Securities served as the initial purchaser of a three and a half year, $100 million term securitization in a Rule 144A private placement that closed on March 31st. The deal included a $90 million senior tranche rated AA by DBRS and a subordinate tranche rated BBB.
“The equity infusion affirms our business model while the securitization shows we can raise long term funding,” said John W. Kiefer, Chairman of First Capital. “These two transactions make us stronger than ever and, most importantly; give us the resources to increase lending.”
Lee Wilson, President and CEO of First Capital said “We are pleased to have the support of H.I.G. to execute our strategy. We will grow by lending to small and mid-size companies who need working capital in a market where many lenders have pulled back.”
With approximately $1 billion in assets under management, First Capital is one of the largest independent and fastest-growing commercial finance companies in the United States. With offices across the United States, First Capital is able to service customers across all industries and regions.
“We specialize in asset based lending and factoring,” added Wilson. “What differentiates First Capital competitively is certainty of timely funding. When timing is critical to capitalize on an opportunity, a relationship with an agile lender like First Capital is paramount.”
“First Capital has a proven business model from loan origination and underwriting, through to exceptional loan servicing processes and systems”, said Brian Schwartz, Executive Managing Director of H.I.G. Capital. “The Company is well positioned to capitalize on a unique market growth opportunity. We are pleased to have the opportunity to work with John Kiefer, Lee Wilson, and their outstanding management team.””
“We welcomed the opportunity to assist First Capital in achieving their strategic financial objectives, and being a part of their continued success,” said Matthew Perkins, Managing Director of Guggenheim Securities.
Houlihan Lokey served as advisor to First Capital in the equity transaction. Structured Finance Advisors served as an advisor to First Capital in the term securitization.
About First Capital
First Capital (www.FirstCapital.com) is a leading commercial finance company providing Asset Based Lending and Factoring to the owners of small and mid-sized companies. These working capital loans are primarily secured by receivables and inventory. With assets just under $1 billion, First Capital is one of the largest independent and fastest-growing commercial finance companies in the United States. It differentiates itself from larger finance company and bank competitors through certainty of timely funding. First Capital believes that its ability to provide exceptional service, the quality of its professionals and its efficient delivery structure make it a preferred lender to its clients and a preferred borrower to its lenders. Headquartered in Boca Raton, FL, the firm has full-service offices in New York, Los Angeles, Atlanta and Oklahoma City as well as a processing center in Manila.
About H.I.G. Capital
H.I.G. Capital is a leading global private equity investment firm with more than $7.5 billion of equity capital under management. Based in Miami, and with offices in San Francisco, Atlanta, Boston, and New York in the U.S., as well as affiliate offices in London, Hamburg and Paris in Europe, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well-managed service or manufacturing businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm's current portfolio includes companies with combined revenues in excess of $8 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
About Guggenheim Partners and Guggenheim Securities
Guggenheim Partners, LLC is a diversified financial services firm with more than $100 billion in assets under supervision. The firm's businesses include investment management, investment advisory, investment banking and capital markets services. The firm is headquartered in Chicago and New York with a global network of offices throughout the United States, Europe and Asia. A subsidiary of Guggenheim Partners, Guggenheim Securities provides corporate and institutional clients with expertise in Investment Banking, Sales and Trading, and Fund Placement. For more information, please visit www.guggenheimpartners.com.