Norwest Mezzanine Partners invests $33 million in two new portfolio companies: Teraco, Inc. and Collect America, Ltd.
August 05, 2005
Norwest Mezzanine Partners invested $5.4 million of senior subordinated debt and $2 million of equity in Teraco, Inc., a leading manufacturer and marketer of a wide range of printed plastic cards including gift cards, loyalty cards, private label credit cards, and hotel key cards and related promotional products. Teraco has been located in Midland, Texas for more than 43 years and is one of the fastest growing plastic card manufacturers in North America. Teraco is recognized as the second largest hotel key card manufacturer and has a client base that spans the globe.
Wafra Partners served as private equity sponsor for this transaction. Visit www.wafrapartners.com for more information.
Norwest Mezzanine Partners recently invested $18.2 million of senior subordinated debt and $8.0 million of equity in Collect America, Ltd., a leading player in the accounts receivable management industry. Collect America and its subsidiaries acquire charged-off consumer debt (primarily fresh credit card charge-offs) at significant discounts to face value from major credit originators and utilize a unique attorney-based franchise network supported by a proprietary software package to collect these accounts. Collect America is not a debt collector but rather operates through a network of strategically located franchises responsible for collecting debt placed with it, as well as also contracting with other debt purchaser to collect accounts on their behalf on a contingency basis.
Collect America is headquartered in Denver, Colorado with franchise locations across the United States.
KRG Capital Partners served as the private equity sponsor for this transaction. Visit www.krgcapital.com for more information.