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TORONTO (February 15, 2006) –The Ontario Teachers’ Pension Plan announced today that its private investment arm, Teachers’ Private Capital, has committed US$700 million to York Street Capital Partners’ second mezzanine debt fund — York Street Mezzanine Partners II, L.P.
York Street will build upon its successful strategy of providing flexible junior capital solutions to private equity sponsors that invest primarily in middle-market U.S. companies. York Street can now commit up to US$80 million per transaction. Investments can take the form of traditional subordinated debt, second lien debt, holdco notes, preferred equity and common equity.
Teachers’ Private Capital will continue to co-invest in the fund’s larger transactions.
“We are pleased to continue our partnership with York Street Capital. This expanded capital commitment helps to fill the growing need for junior capital driven by strong buyout markets and record levels of private equity fundraising,” said Jim Leech, Senior Vice-President, Teachers’ Private Capital. “Through York Street, we are providing broader financing alternatives to companies and equity sponsors at a time when flexible junior capital solutions are an important component in financing both buyouts and corporate expansion. We believe that York Street will continue to generate superior returns and provide attractive co-investment opportunities for Teachers’ Private Capital.”
York Street plans to build upon its successful strategy of providing flexible junior capital solutions to private equity sponsors that invest primarily in middle-market U.S. companies. “As interest rates continue to rise and alternative financing options become less compelling, we believe private equity sponsors will continue to use mezzanine securities as an attractive way to boost returns and remain competitive,” said Rob Golding, Managing Partner at York Street.
Managing Partner Chris Layden said that while York Street’s investment strategy will not change, the breadth of solutions it can offer will expand significantly. “The larger capital base will enable York Street to offer broader alternatives to middle market companies and equity sponsors at a time when flexible junior capital solutions are a crucial component in buyou financing.”
About Teachers’ Private Capital
Teachers’ Private Capital is the private investment arm of the C$88 billion Ontario Teachers’ Pension Plan, which invests on behalf of 250,000 active and retired teachers in Ontario, Canada. With more than C$9 billion in assets, Teachers’ Private Capital is one of Canada’s largest private investors, providing equity and mezzanine debt capital for large and mid-cap companies, venture capital for developing industries, and financing for a growing portfolio of infrastructure and timberland assets worldwide.
About York Street Capital Partners
York Street’s first fund launched in 2002. Since then, York Street has partnered with many leading middle market private equity sponsors and has invested and committed over US$350 million, including Teachers’ Private Capital co-investments, in 12 transactions. York Street targets investments of US$25 million and greater across a broad spectrum of industries. For further information about York Street Capital Partners, visit the firm's website: www.yorkstreetcapital.com.
Contact:
Deborah Allan
Director, Communications
Ontario Teachers’ Pension Plan
(416) 730-5347
deborah_allan@otpp.com
Robert M. Golding
York Street Capital Partners
(908) 658-3714
golding@yorkstreetcapital.com
Christopher A. Layden
York Street Capital Partners
(908) 658-3713
layden@yorkstreetcapital.com
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