EVANSTON, Ill., Aug. 2, 2013 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (Nasdaq: FDUS ) ("Fidus" or the "Company") today announced the successful exit of its debt and equity investments in Worldwide Express Operations, LLC ("Worldwide") in connection with a sale of the company. As part of the sale of the company, Fidus received payment in full on its subordinated notes and recognized a gain of approximately $22.0 million on its equity and warrant investments.
"This transaction is a great outcome for the shareholders of Fidus," said Edward Ross, Chairman and CEO of Fidus Investment Corp. "We have had a tremendous partnership with the management team at Worldwide and they have done an outstanding job of executing on the company's strategic growth plan."
Worldwide is a global logistics company based in Dallas, Texas that has handled millions of package and freight shipments for more than 30,000 small to midsize businesses. With more than 150 franchises across the country, Worldwide is one of the largest resellers of light parcel package shipping, as well as a trusted freight partner to more than 55 carriers.
Fidus originally invested in Worldwide Express in August 2007 with $13.3 million in subordinated notes, subordinated notes with warrants, and equity as part of a management led recapitalization of the company. Fidus continued to support Worldwide as it grew, including its participation in a 2009 restructuring that provided the company with additional operating flexibility. At that time, Fidus invested an incremental $0.3 million of equity and received additional warrants.
In June 2013, Worldwide refinanced all of its outstanding debt, including the Fidus subordinated notes. Fidus received $21.2 million in proceeds, representing payment in full of principal and accrued interest. In connection with the refinancing, Fidus invested an incremental $11.7 million in subordinated notes in Worldwide, which notes were fully repaid in connection with the sale of the company.
In conjunction with the sale of the company, Fidus has continued to support Worldwide and its management team, investing $15.0 million in new subordinated notes and equity securities.
ABOUT FIDUS INVESTMENT CORPORATION
Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10.0 million and $150.0 million. Fidus' investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.
Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus intends to elect to be treated as a regulated investment company, or RIC, under Subchapter M of the Internal Revenue Code of 1986, as amended, or the Code. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007 and is licensed by the US Small Business Administration as a small business investment company (SBIC).
FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking statements. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under Fidus' control, and that Fidus may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in Fidus' filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and Fidus undertakes no obligation to update any such statement now or in the future.
Company Contact: Edward H. Ross Chief Executive Officer Fidus Investment Corporation (847) 859-3940 Investor Relations Contact: Stephanie Prince/Jody Burfening LHA (212) 838-3777
