Toronto, Ontario (October 5, 2011) – Clairvest Group Inc. (TSX:CVG) (“Clairvest”), Clairvest Equity Partners IV Limited Partnership and Clairvest Equity Partners IV-A Limited Partnership (collectively, “CEP IV”) announced today that Centaur, LLC and its affiliated debtors emerged from Chapter 11 protection on October 1, 2011, and implemented its court-approved Plan of Reorganization (“the Plan”). Per the terms of the Plan, pre-petition first lien debt holders received a combination of cash and securities in the reorganized Company, which is known as Centaur Holdings, LLC (“Centaur”, or “the Company”). Through its operating subsidiaries, Centaur holds various gaming interests including the Hoosier Park Racing & Casino in Anderson, Indiana.
As holders of US$141.0 million face principal value of pre-petition first lien debt, Clairvest, CEP IV and co-investors received the following: approximately US$23.0 million in cash, US$59.2 million in new first lien secured notes, US$22.2 million in new second lien secured notes and US$18.5 million in unsecured term loan with stapled warrants, which, subject to regulatory approval, are convertible upon exercise into 35.8% of the Company’s Class A units prior to the effect of any management incentive (Class M) units.
“We are very pleased that Centaur has completed this important step. We look forward to supporting management as they continue to do what they do best: providing a high-quality racing and gaming experience to their clientele in the greater Indianapolis area,” said Michael Wagman, Managing Director of Clairvest.
In exchange for its US$39.1 million face principal value in Centaur’s first lien debt which had a total cost of US$35.1 million, Clairvest received approximately US$6.4 million in cash, US$16.4 million in new first lien secured notes, US$6.2 million in new second lien secured notes and US$5.1 million in unsecured term loan with stapled warrants, convertible upon exercise (following regulatory approval) into 9.9% of the Class A units in Centaur.
Clairvest Group Inc. is a private equity management firm which invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
Director, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753