American Capital Strategies Ltd. announced yesterday that it and a wholly-owned affiliate of American Capital have been repaid its $15 million senior subordinated debt investment in Bumble Bee Seafoods L.P. and received a distribution related to its limited partnership investment in Bumble Bee.
American Capital and its affiliate realized a gain of $1.2 million on the repayment of the debt and on the distribution related to its equity investment. American Capital and its affiliate earned a 33% return, including the payment of all interest and fees received over the life of the investment. American Capital received the repayment and distribution in connection with the merger of Bumble Bee's U.S. and Canadian operating subsidiaries with Connors Bros. Income Fund, a Canadian open-ended limited purpose trust.
The transaction created North America's largest branded seafood company. Connors Bros. owns an approximate 68% interest and Bumble Bee owns an approximate 32% interest in the combined business. Bumble Bee can exchange its interest in the combined business' operating subsidiaries for either cash or units in Connors Bros. after a specified period of time. American Capital, through its affiliate, retains its limited partnership interest in Bumble Bee, representing a less than 1% diluted ownership interest in the combined business.
In May 2003, American Capital and its affiliate invested $15 million of senior subordinated debt with limited partnership interests in Bumble Bee, a leading global producer and marketer of canned tuna and other seafood and the leader in the premium albacore tuna market. American Capital's investment supported the acquisition of the assets and operations of Bumble Bee from ConAgra Foods Inc. by management and affiliates of Centre Partners Management LLC.
