CAPITAL RESOURCE PARTNERS ANNOUNCES $20 MILLION INVESTMENT IN COMMUNICATIONS
DYNAMICS, INC., A LEADING MULTINATIONAL DISTRIBUTOR TO THE COMMUNICATIONS
INDUSTRY
Boston,
MA, June 12, 2001 - Capital Resource Partners ("CRP")
announced today a $20 million investment in Communications Dynamics,
Inc. ("CDI") a leading multinational distributor of voice,
video, and data communications equipment and supplies sold to cable
television and public data network ("PDN") operators. CRP's
investment was two-thirds subordinated debt and one-third redeemable
preferred stock. CDI supplies many of the materials used in the construction
of cable systems including distribution, drop and in-home subscriber
products. In addition, CDI supplies a broad range of fiber optic and
telephony products.
Capital
Resource Partners, which provides mezzanine and equity capital, led
the $40 million junior capital raise with its $20 million investment.
Two other mezzanine funds participated in the round. In addition,
the company raised $25 million of new senior term debt.
The total
proceeds of CDI's capital raise were used to help finance earn-out
payments related to prior acquisitions and fund ongoing working capital
needs.
According
to Bill Holm, Partner, Capital Resource Partners, "We are very
excited about our investment in CDI and are confident in management's
ability to continue to grow the business. The company has a strong,
experienced management team, who have a comprehensive understanding
of the dynamics occurring within its markets, a proven ability to
identify and capitalize on those opportunities, and a track record
of strong growth in sales and profitability."
Capital
Resource Partners provides mezzanine and equity capital for growth,
leveraged buyouts, and recapitalizations. Through its $425 million
fund, Capital Resource Partners IV, CRP invests $5 million to $30
million in a wide range of industries including business and information
services, manufacturing, consumer products and services, software
telecom, and healthcare services.