Private Equity Week Wire for Friday 6/29

SAN DIEGO — VitaGen Inc. announced todaythat it has completed a first closing of its Series C financing, raisingapproximately $14 million from several prominent life science venture funds.Existing investors JP Morgan Partners, BD Ventures, Merrill Lynch Ventures,Perseus Biotech Advisors (New York Life), Tullis-Dickerson & Co., EssexWoodlands Health Ventures, Pacific Horizon Ventures, Paragon Venture PartnersII, Alta Partners, Radius Ventures, Triad Ventures Limited II, and BCMTechnologies were joined by new investors ORBITEX Management, Banc One VenturePartners, and CDIB U.S. Biotech to close this round. Asante Partners LLC ofNew York and Menlo Park, California will continue to assist VitaGen through asubsequent closing anticipated shortly to complete the Series C financing.

TORONTO — A third round of funding from a group of firms with experience in technology will help Castek Software Factory Inc. advance product development and propelmarket access, Castek Chief Financial Officer Fay Wu announced here today. The $10 million funding, from the Netherlands-based p3 Technology Partners — and Toronto-based CIBC Capital Partners and Altamira Management Ltd. — was completed earlier thismonth. The funding marks the first Canadian investment by p3, a Dutch VC fund backed by bank-insurers ING and Achmea, and the third time that Altamira has participated in a Castekplacement.

NEW ORLEANS — Turbo Squid Corp., the world’s online digital marketplace, today announced the completion of its first round of fundingled by Advantage Capital Partners. Additional participants include Eastman Kodak Company and Intel Capital. The amount of the investment was $5.1 million. Other terms were notdisclosed. This round of funding will enable Turbo Squid to advance product engineering of its digital marketplace software, which aggregates and offers ready to use, rich media content to digitalcontent creators. The funding will also be used to enhance Turbo Squid’s sales and marketing efforts and support their strategic partnership initiatives. Turbo Squid’s online digital marketplace, which will initially focus on 3D assets and content, allows users to post, price and track the sales of their own assets, creating a digitalrepository exponentially larger than anything previously available.

CLEVELAND — Gliatech Inc. (Nasdaq: GLIA) announcedtoday that the Company has received an additional $2.5 million under itsagreement with Paul Capital Royalty Acquisition Fund, L.P. (“PCRAF”). TheCompany received an initial $5 million cash infusion in April 2001, andtogether with the recent investment, has now received a total of $7.5 million.The Company’s agreement with PCRAF further provides that the Company willreceive an additional $7.5 million upon satisfaction of certain conditions,including the commercial relaunch of ADCON(R)-L in the U.S., and up to$15 million of additional funding possible thereafter.

NEW YORK — InStranet Inc., developers of softwarefor enterprise information exchange applications, announced today thatit has raised $14.7 million in Series C financing. Benchmark Capital andDonald L. Lucas, a leading U.S. venture capital investor, joined in co-fundingthe round. One of Silicon Valley’s top high-tech venture capital firms,Benchmark Capital is investing through its new Benchmark Europe I, LP fund.Original investors Business Objects, Apollo Invest, RSA SAand Galileo Partners, one of Europe’s best known venture capital firms, arealso participating.

SAN DIEGO — TransWestern Publishing Co. LLC today announced that, concurrent with the acquisition of Inc. (NYSE:WPZ),it has completed a recapitalization with an investor group led by Thomas H. Lee Partners, CIVC Partners, LLC (an affiliate of Bank of America Corp.), Providence Equity Partners andTransWestern Publishing management. The $900 million recapitalization represents the first investment for Thomas H. Lee Equity Fund V, L.P., a $6.1 billion private equity fund. Debt financing for the transactions includedthe issuance of $75 million of senior subordinated notes on May 23, 2001, led by CIBC World Markets Corp. and First Union Securities Inc. and a $300 million senior credit facilityarranged by CIBC World Markets Corp., First Union Securities Inc. and Fleet Securities Inc. The law firm of Kirkland & Ellis represented TransWestern Publishing and the investorgroup led by Thomas H. Lee Partners.

CHARLOTTENC — Global Capital Partners Inc. (Nasdaq: GCAP) announced today that it hasclosed an equity financing of $2,000,000 of its common stock at $.64 per shareto a group of private investors. The investors also received warrants topurchase another $2,400,000 of the Company’s common stock at a price of $.77per share. The Company intends to use the capital to strengthen its balancesheet and for working capital purposes.

NASHVILLE, TN — The Potomac Group Inc., a leading provider of health care information services, today announced its acquisition byinternational investors in a transaction arranged by Crescent Capital Investments, Inc. Crescent Capital is a leading private equity investment firm based in Atlanta, Georgia. The merger is structured as a cash-for-stock transaction totaling approximately $117 million; other specific terms of the transaction were not disclosed. The transaction closed onThursday, June 28, 2001. Following the merger, Potomac will operate under the name “MediFAX-EDI, Inc.” A portion of the financing was provided by Bank of America, N.A. andBank One Kentucky, N.A.

TAMPA, FL — JLM Industries Inc. (Nasdaq:JLMI), a leading global marketer, distributor and manufacturer of commodity and specialtychemicals, announced today that it has completed its previously announced financial restructuring. The Company has completed financings totaling $31.5 million, the proceeds of whichwere used to refinance the Company’s previous credit facilities and reduce outstanding indebtedness. The financings consisted of a $20.0 million revolving credit line provided by Congress Financial Corporation, a $7.1 million term debt facility provided by GATX Capital Corporation,a $1.9 million mortgage loan provided by SouthTrust Bank and a $2.5 million private placement of common stock led by Phoenix Enterprises LLC.

BOCA RATON, FL — RailAmerica Inc. (Nasdaq: RAIL), the world’s largest operator of short lineand regional freight railroads, today announced that it has completed aprivate placement of its common stock in the aggregate amount of approximately$41 million. Investors in the private placement included John HancockAdvisers, Inc., Putnam Investments, Capital Research and Management Company,Bank of America, and U.S. Bancorp Piper Jaffray Asset Management, amongothers.
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