BAYSIDE CAPITAL TAKES SIZEABLE STAKE IN PROTOCOL MARKETING SERVICES, INC.
January 2, 2006 – Protocol Marketing Services, Inc. (“Protocol”) announced today that it has the successfully emerged from bankruptcy. Under Protocol’s plan of reorganization, its former senior lenders will receive a combination of new notes with a face value of $85 million and 58% of the reorganized Company’s common stock. Bayside Capital, which became the Company’s largest pre-petition senior creditor when it acquired several pieces of debt in 2005, will be the largest lender and equity holder in the newly reorganized company. Protocol is a fully-integrated marketing services company, combining direct marketing, data and production services, research solutions, lead management solutions, contact centers, and media replication and fulfillment services into a seamless service offering. In 2005, Protocol had revenues of nearly $200 million.
Anthony DiSimone, Managing Director of Bayside Capital, said, “Through the bankruptcy process, Protocol was able to eliminate over $125 million of debt and realign its balance sheet, greatly improving the Company’s competitive position. Current management, lead by Charles Dall’Acqua, has done an outstanding job of profitably growing the business. Along with our partners at CIBC, Bear Stearns and the former mezzanine lenders, we look forward to continuing to work closely with the Company and its management team to rapidly grow the business together. We are confident that this support will further enhance the Company’s operational excellence and industry leadership.” Charles Dall’Acqua, Chief Executive Officer, commented, “We are very pleased to have emerged from Chapter 11 in less than 5 months. During this period we were able to keep our entire management team in place and continued to grow the business, adding 35 new customers. The entire team is energized and looking forward to continuing our growth with our integrated direct marketing strategy.”
About Bayside Capital
Bayside Capital is a private investment firm which actively invests in the debt and equity of middle market companies that can benefit from operational enhancements, improved access to capital, or balance sheet realignments. With the ability to provide capital through a broad array of securities including senior and subordinated debt, equity, Debtor-In-Possession facilities, and special situation loans, Bayside has the experience and resources to help companies quickly resume growth initiatives and improve their strategic position. Bayside Capital is an affiliate of H.I.G. Capital, a leading private equity investment firm specializing in acquisitions and recapitalizations of middle market businesses. Based in Miami, Florida, and with offices in Atlanta, Boston, and San Francisco, the firm is one of the most active private equity investors in small and medium-sized companies. We have available in excess of $2 billion of committed equity capital to support our investment activities. In the last decade, we have invested in over 50 companies with combined revenues of over $5 billion.
|
