Behrman Capital Recaps Pelican

By
Brad Meikle
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Behrman Capital has completed a $435 million dividend recapitalization of Pelican Products, and two more recaps are in the works, according to peHub, a sister Web site of Buyouts.

In a release, Behrman said the recap comprised a $405 million term loan and $30 million revolving credit facility. However, Behrman didn’t mention that the new loan was used to fund a dividend for company shareholders. In November, peHub reported that Pelican was seeking a $435 million loan to fund a payout to Behrman.

Right now, it’s unclear how big the dividend was to Behrman. A spokesman for the buyout firm declined comment.

Torrance, Calif.-based Pelican makes and designs unbreakable, watertight protective cases and advanced professional flashlights. In 2004, Behrman, a buyout shop with offices in New York and San Francisco, acquired Pelican in a $200 million deal.

Separately, iHealth Technologies is in the market for a $250 million loan. The loan will be use to refinance debt and fund a $215 million dividend to its investors, according to Thomson Reuters Loan Pricing Corp. The deal also includes a $50 million revolving credit facility, LPC said.

Atlanta-based iHealth, which provides payment policy management services for healthcare organizations, is owned by Oak Investment Partners.

Moody’s assigned a B3 probability of default and B2 rating to iHealth’s debt package. Moody’s said the rating reflects the company’s moderately high leverage (which is partly due to the planned dividend), iHealth’s modest overall size and scale, plus iHealth’s concentrated business profile with niche products and service offerings. Moody’s said the company’s outlook is stable.

iHealth’s rating is also constrained by its financial sponsors, i.e. Oak Investment Partners, which confers a degree of event risk, Moody’s said. “The financial sponsors’s interest may not be aligned with those of debt-holders,” Moody’s said.

Elsewhere on the payout parade, Earthbound Farm, which produces organic pre-packaged salads and vegetables, is also looking to launch a $250 million loan to fund a payout to sponsor HM Capital. The deal includes a $25 million revolving credit facility that will be used to refinance debt, LPC says.

HM Capital, a Dallas PE firm, acquired Earthbound Farm in 2009.