Private equity firm American Capital, Ltd.ACAS and its wholly-owned affiliate - European Capital Limited - have received €91.4 million as they exited their 2007 unitranche investments in Delsey, a leading global luggage brand.
European Capital and American Capital have also invested an additional €7.8 million in subordinated mezzanine bonds in order to support refinancing and future growth of Delsey.
Back in February 2007, European Capital had invested €120 million in the unitranche facility to aid the Delsey acquisition. French company Delsey, which was founded in 1946, is engaged in product designing, marketing and sales of travel luggage and travel accessories. The company sells its products in over 100 countries through the Internet and owned retail stores.
European Capital, which primarily invests in pan-European equity, mezzanine and senior debt investments, currently manages €0.9 billion of assets.
According to the latest release, the partial exit of European Capital comes as majority shareholders of Delsey - Argan Capital and Partners Group - agreed to refinance 100% of the unitranche bonds to lend support to Delsey's growth initiatives implemented over the years.
Managing Director at European Capital, Etienne Haubold, mentioned, "We are pleased to announce the refinancing of the first unitranche facility provided in Europe, which yielded a very positive outcome for European Capital. This investment illustrates our ability and strategy to provide flexible financing solutions."
American Capital currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the finance space include Capitala Finance Corp. CPTA , BlackRock Capital Investment Corporation BKCC and KCAP Financial, Inc. KCAP . All three stocks sport the same rank as American Capital.
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