Brentwood Associates Recapitalizes Teaching Company

Wireless News
03-31-2011
Brentwood Associates Recapitalizes Teaching Company
Type: News

Brentwood Associates, a consumer-focused private equity investment firm, announced it has completed a recapitalization of its portfolio company, The Teaching Company Holdings.

In a release dated March 28, the Company said the recapitalization, financed through a new $170 million credit facility, provides a significant return on Brentwood's original investment in the Company, while leaving its ownership stake unchanged.
Eric Reiter, a Partner at Brentwood, said, "The Teaching Company has demonstrated exceptional financial and operational performance since our acquisition in 2006, having more than doubled its profitability and significantly expanded its content library. The Company is led by an outstanding management team that has successfully executed several important strategic initiatives, including a significant expansion of its marketing efforts and the implementation of a digital distribution platform. With a broad offering of premium-quality, highly-engaging educational content, The Teaching Company is well positioned for accelerated growth as it leverages the many exciting opportunities in digital distribution."

William Barnum, a Partner at Brentwood and co-founder of the firm's private equity effort, said, "With a dedication to creating engaging courses taught by extraordinary professors, The Teaching Company has significantly broadened its base of passionate and loyal customers. Notwithstanding the challenging consumer spending environment over the last several years, the Company has reached new heights both in terms of financial performance and overall customer satisfaction. With the advent of new mobile technology platforms and the continuing convergence of TV and internet, The Teaching Company has never been better positioned for continued growth."

The financing for the recapitalization was provided by the Senior Secured Loan Program, which is jointly managed by Ares Capital Corp. and an affiliate of GE Capital. GE Capital served as administrative agent, while Ares Capital Corporation served as documentation agent.

Eric Beckman, a Senior Partner in the Global Private Debt Group of Ares Management, said, "We are excited to partner once again with the talented management team of The Teaching Company and are delighted to have provided a flexible financing solution to one of our key sponsor clients."

Ares also provided the financing for the original acquisition in 2006.

Cindy Rogers, a Managing Director at GE Capital, said, "We were pleased to support our long-standing relationships with Brentwood and The Teaching Company through the Senior Secured Loan Program."

The Teaching Company is a developer and marketer of university- level courses targeted at life-long learners.

Brentwood Associates is a consumer-focused private equity investment firm.

Senior Secured Loan Program was formed in December 2007 with approximately $3.6 billion of available capital to invest in the senior secured debt of middle-market companies. The program is co- managed by GE Commercial Finance Investment Advisory Services and Ares Capital and transactions require approval by both managers.

Ares Capital is a specialty finance company.

GE Capital offers financial products and services.

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