Babson Capital Management Provides Subordinated Debt, Equity to Support Sterling Investment Partners' Investment in Service Logic
Babson Capital Management LLC, a global investment management firm with more than $154 billion in assets under management and operations on four continents, today announced it provided subordinated debt and made an equity co-investment to support Sterling Investment Partners' acquisition of Service Logic through the acquisition of MSHC Inc.
Babson Capital served as the lead provider of subordinated debt on the transaction.
Denver, Colo.-based Service Logic is the largest independent U.S. provider of preventive and predictive maintenance services and related energy sustainability services for heating, ventilation and air conditioning (“HVAC”) systems. With more than 600 highly trained field technicians, engineers and project managers, Service Logic provides mission-critical services to more than 6,000 commercial, industrial and institutional clients in selected markets across 16 states.
“Babson Capital has proven itself to be a reliable, trusted and value-added business partner to Sterling Investment Partners on many investments over the course of our long and successful relationship,” said William Macey, a Managing Partner of Sterling. “We look forward to working with the Babson Capital team on Service Logic and other investments in the future.”
“Sterling's impressive history of success in acquiring and adding value to service-based businesses, combined with the strength of the Service Logic management team, made this an extremely attractive opportunity,” said Robert Shettle, Managing Director and a senior member of Babson Capital's Mezzanine & Private Equity Group. “With our focus on developing strong long-term relationships with high-quality private equity sponsors, Babson Capital is extremely grateful to be able to call Sterling our partner for more than 18 years.”
About Sterling Investment Partners, L.P.
Founded in 1991, Sterling Investment Partners (“Sterling”) has been investing in and building middle market companies for over 21 years with a highly experienced, cohesive team of senior investment professionals. Sterling acquires businesses that the firm believes have strong, sustainable competitive advantages and significant opportunities for value creation. Sterling has a long history of working in partnership with management teams. Sterling has approximately $1.0 billion of equity capital under management, which includes significant investment from Sterling's professionals. Over its history, Sterling has completed platform investments, strategic or add-on acquisitions, recapitalizations and liquidity events with an aggregate transaction value in excess of $8.8 billion, representing more than 100 transactions. Key industries Sterling focuses on are business services, industrial and consumer value-added distribution, niche manufacturing, and transportation and logistics. www.sterlinglp.com.
About Babson Capital
Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have over $154 billion in assets under management as of September 30, 2012. Through proprietary research and a focus on investment fundamentals, we develop products and strategies that leverage our broad array of expertise in global corporate debt markets, structured products, debt and equity financing for commercial real estate, and alternatives. Headquartered in Boston, the firm's subsidiaries include Cornerstone Real Estate Advisers LLC and Wood Creek Capital Management, LLC. Babson Capital is a member of the MassMutual Financial Group and is on the web at www.BabsonCapital.com.
This announcement appears as a matter of record and should not be construed as a recommendation or advice.
Luquire George Andrews
David Coburn, 704-552-6565 or 704-408-4276