Seeking Alpha

Prospect provides $260M financing for buyout deal

  • The $260M of floating-rate, senior-secured financing will help fund the acquisition of Ash City Worldwide by Broder Bros.
  • "Prospect's (PSEC) ability to fully underwrite the entire $260M financing need on an expedited basis was critical to the success of the transaction," says an executive involved in the deal.
  • Press release
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Comments (5)
  • RickyC
    , contributor
    Comments (69) | Send Message
    This is great news for PSEC. Here's why: Alphabroder is an online distributor of both major brand clothing & other items. Also, they offer their services to small sellers of apparel in a way that Amazon does not. For example, a small manufacturer or reseller can use Alphabroder to create websites, catalogs, and use the Alphabroder distribution system.
    Ash City is a manufacturing & distribution company of customized apparel based in Canada. It is a natural "fit" (yep, that's a deliberate pun) for Alphabroder.
    10 Jan 2014, 11:58 AM Reply Like
  • Guardian3981
    , contributor
    Comments (2213) | Send Message
    That comment really provides zero value in terms of financially how good of a move this was. I can buy a company that sounds good in terms of what they do but have terrible alpha from.
    10 Jan 2014, 01:24 PM Reply Like
  • Rob1492
    , contributor
    Comments (502) | Send Message
    Hi RickyC!


    I think yours is a great comment as it gives the macro basis of why PSEC approved the deal. It addition, it would be nice to know the financial details specific to the loan itself. If you find out it would be nice to share!




    10 Jan 2014, 03:18 PM Reply Like
  • RickyC
    , contributor
    Comments (69) | Send Message
    Hello, Rob,
    Thanks for your comment.


    The details specific to the loan should appear in the next 10-Q filed with the SEC by PSEC. However, if the transaction settled this month as I suspect, then it will not be until the following quarter's 10-Q report.


    BTW, a great way to get more detailed information is to go to which is their website. I recommend listening to their webcasts. The analysts questions posed in the Q & A session are enlightening.


    Going to is where you can look at past 10-Q's. Once you get on the 10-Q link, scroll down until you see the company referenced. You'll see details such as the senior/junior position, interest rate, index used (such as LIBOR), etc.


    Happy investing!!
    11 Jan 2014, 03:42 PM Reply Like
  • Rob1492
    , contributor
    Comments (502) | Send Message
    Hey Rick


    Thanks for the info!


    11 Jan 2014, 06:54 PM Reply Like
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