American Capital Refinances Stein World

October 31, 2010  by in UnCategorized   

By Home Furnishings Business in Lighting on November 1, 2010

American Capital Ltd. (NASDAQ: ACAS) has invested $32 million in the debt refinancing of accent furniture vendor Stein World, Memphis.

American Capital's investment takes the form of a senior term B loan and senior and junior subordinated debt. GE Antares Capital, a unit of GE Commercial Finance, and Dymas Capital Management are investing in a senior term A loan and are also providing a revolving credit facility. Goense Bounds & Partners, New York Life Insurance Company, Stein World management and private investors are currently invested in the equity. Goense Bounds is the majority equity investor.

"Our investment in Stein World not only backs the growth of an excellent accent furniture company, but also develops a new relationship with an experienced private equity firm, Goense Bounds. This is our 10th new private equity partnership in 2005 and 14th in the last twelve months," said American Capital Chief Operating Officer Ira Wagner. "American Capital's strong position in the market, flexible capital, dedicated professionals and experience in a variety of industries make us a great partner for private equity firms seeking financial support for their portfolio companies."

American Capital has invested nearly $3.6 billion in the last twelve months, over $2.9 billion year to date and $164 million quarter to date.

"Stein World's unique outsourced business model and 'fashion-current' business approach has enabled it to experience significant growth in the attractive accent furniture market. In addition, the Company's differentiating one-week delivery ability, exceptional customer service, large product offering, strong Asian sourcing relationships, and lack of customer and product concentration have solidified Stein World's unique market position," said American Capital Managing Director Ian Larkin. "Furthermore, Stein World's volume allows it to cost-effectively address the demands of its retail customers and achieve economies of scale unmatched by its competition. We believe in the strong management team that has delivered impressive financial results and are confident in the leadership of President Andy Stein, a highly motivated visionary."

Stein World offers a broad selection upscale residential accent furniture and decorative lighting.