ABACUS FINANCE PROVIDES SENIOR FINANCING FOR THE
ACQUISITION OF PRATER-STERLING BY INDUSTRIAL MAGNETICS,
A RIVER ASSOCIATES INVESTMENTS PORTFOLIO COMPANY


June 2, 2014 - Abacus Finance Group, LLC (Abacus), a New York-based specialty lending company dedicated to providing cash-flow senior financing for private equity-sponsored, lower-middle market companies, announced today that it served as Administrative Agent and Sole Lead Arranger for senior secured credit facilities to support the add-on acquisition of Prater-Sterling, Inc. (Prater-Sterling) by Industrial Magnetics, Inc.(IMI), a River Associates Investments, LLC (River Associates) portfolio company.

With headquarters in Bolingbrook, IL, Prater-Sterling develops and manufactures particle processing equipment and control systems used in the food and beverage, chemical and mineral, industrial, agricultural and pharmaceutical industries.  IMI, which is based in Boyne City, MI, is an industry leader in providing permanent magnets and electromagnets for work-holding, lifting, fixturing, conveying and magnetic separation. River Associates Investments LLC, based in Chattanooga, TN, is  a private equity partner for management teams of lower middle market companies in buyouts, divestitures and recapitalizations.

“Once again Abacus was a great fit in an important transaction for us. We had worked with them in the leveraged buyout of IMI and saw the same willingness in this transaction to work hand-in-hand with our team to arrange funding on an expedited basis,” said Patten Pettway, Partner at River Associates.  “The financing solution the Abacus team came up with was strong and the execution was great. We look forward to future transactions with them.” 

“River Associates is one of the best sponsors we work with,” said Tim Clifford, President and CEO of Abacus. “A terrific client, they brought us a transaction that makes great strategic sense because both IMI, which is the platform company, and Prater are leaders in their respective spaces. The key aspects of the financing for River Associates were our ability to provide certainty of close, our understanding of the business and the structuring flexibility we offered – all ingredients of what we call our Total Partnership Approach.”

Abacus team members involved in the transaction included Timothy Wong and Chengyuan Zhao. Joining in the financing was Crescent Capital, and legal counsel was provided to Abacus by Goulston & Storrs, LLP.

About Prater-Sterling, Inc.

Founded in 1925 and headquartered in Bolingbrook, IL, Prater-Sterling develops and manufactures particle processing equipment and control systems used in the food and beverage, chemical and mineral, industrial, agricultural and pharmaceutical industries. The first of the company’s two divisions, Prater, produces and designs particle reduction equipment (lump breakers, hammer mills, fine grinders), separation mechanisms (vibrating screens, sifters, classifiers), and feeding machinery (airlocks, compactors). Sterling provides process automation systems including batching and blending, and material weighing systems; process controls, motor control centers, control panel fabrication and integration along with dry and liquid material handling systems. Visit prater-sterling.com for more information.

About Industrial Magnetics, Inc.

With worldwide distribution through a combination of a direct sales force and manufacturer representatives, Industrial Magnetics is an industry leader in providing permanent magnets and electromagnets for work-holding, lifting, fixturing, conveying and magnetic separation.  A specialist in custom fabricating, IMI designs engineers and manufactures magnetic assemblies and devices for customers' specific requirements. Visit magnetics.com for more information.

About River Associates Investments, LLC

River Associates Investments LLC, based in Chattanooga, TN, was founded in 1989 as a private equity partner for management teams of lower middle market companies in buyouts, divestitures and recapitalizations. River Associates invests in companies operating in a range of industries that includes manufacturing, high-margin distribution, industrial services and select retail businesses. Investing throughout the United States and Canada, it focuses primarily on companies with adjusted operating income (EBITDA) ranging from $4-10 million. Visit riverassociatesllc.com for more information.

About Abacus Finance Group, LLC

Abacus Finance, headquartered in New York, NY, is a specialty lending company, focused on providing cash flow senior financing to private equity-sponsored, lower-middle market companies nationwide.  Formed in June 2011, Abacus targets debt financing opportunities of up to $50 million with a typical hold size ranging from $10 million to $25 million, and the companies it finances generally have EBITDA between $3 million and $15 million. Abacus is an affiliate of New York Private Bank & Trust, the holding company for Emigrant Bank, which was founded in 1850. 

Abacus is headquartered at 6 East 43rd Street, 20th Floor, New York, NY 10017. All inquiries and new investment opportunities should be directed to Tim Clifford at 212-850-4620 or to cliffordt@abacusfinance.com. Visit abacusfinance.com for more information.