Capitala Group Announces Significant Realization in its Credit Strategy
December 12 2019 - 9:30AM
Capitala Group (“Capitala”), a provider of capital to lower middle
market companies, announced today the sale of its portfolio
company, Nth Degree, Inc., (“Nth Degree”) to MSouth Equity
Partners. On December 3, 2019, Capitala Group and affiliates
received $9.1 million for full repayment of senior secured debt and
received total consideration of $36.7 million for its equity
investment, resulting in a realized gain of $32.0 million. Over the
course of the investment period, Capitala Group and affiliates
received total consideration of $39.3 million for its equity
investment of which $30.8 million has been realized. This
represents a total equity multiple on invested capital of 13.1x.
As part of the December 3, 2019 sale, Capitala Group’s BDC,
Capitala Finance Corp., (the “Company”)(Nasdaq: CPTA) received $7.3
million for full repayment of its senior secured debt and received
total consideration of $29.4 million for its equity investment,
resulting in a realized gain of $25.9 million. As part of the total
consideration, Capitala Finance Corp. received $6.1 million in
rollover equity in the successor entity to Nth Degree.
“Since 2015, Capitala has supported Nth Degree during a period
of extraordinary growth. The outstanding performance of this
investment is a credit to the strong management team at Nth Degree
that was able to successfully drive operational improvements,
execute and integrate an acquisition and strategically position Nth
Degree for future success,” said Randall Fontes, Managing Director
of Capitala. “We look forward to continuing our partnership with
the entire Nth Degree management team and MSouth Equity
Partners.”
Nth Degree, headquartered in Duluth, GA, is a market-leading
provider of exhibit management services and event services to
clients across the globe. Capitala Group acquired Nth Degree
in partnership with Gladstone Investment Corp (Nasdaq: GAIN) and
management in December of 2015 and provided necessary capital and
insights to advance Nth Degree to the next phase of
growth.
About Capitala Finance Corp. Capitala Finance
Corp. is a business development company that invests primarily in
first and second lien loans, subordinated debt and, to a lesser
extent, equity securities issued by lower middle market companies.
The Company is managed by Capitala Investment Advisors, LLC. For
more information on Capitala Finance Corp., or to automatically
receive email notifications of Company financial information, press
releases, stock alerts, or other corporate filings, please visit
the Investor Relations section of our website.
About Capitala Group: Capitala
Group is a $3.0 billion asset management firm that has been
providing capital to lower middle market companies through
its credit, growth, and equity investment
strategies throughout North America for twenty years. Since
its inception in 1998, Capitala has invested in over 150 companies
and seeks to partner with strong management teams to create value
and generate superior risk-adjusted returns for its individual and
institutional investors. For more information, definition and
details visit Capitala Group’s website at
www.capitalagroup.com.
Contacts:
Steve ArnallCFO | COO sarnall@capitalagroup.com
Katina Cole Jakubowski Director of Marketing
kjakubowski@capitalagroup.com
SOURCE: Capitala Finance Corp.
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