Maranon Capital Provides One-Stop Financing for PKWARE

• Press Release
• Source: Maranon Capital, L.P.
• On 3:43 pm EST, Tuesday November 10, 2009

CHICAGO--(BUSINESS WIRE)--Maranon Capital, L.P. is pleased to announce the closing of a $38 million one-stop financing facility to support the purchase of PKWARE, Inc. by Novacap Technologies III, LP and management. Maranon’s investment consisted of $28 million of senior revolving credit and term debt and $10 million of mezzanine debt. Maranon also invested $4 million of equity in the transaction. Grace Matthews, Inc. provided advisory services to PKWARE and also invested in the transaction through an affiliate.

“Maranon’s ability to provide all of the senior and mezzanine debt required to complete the transaction was a key reason we selected them as our financing partner,” said Pierre McMaster, a General Partner at Novacap. “In addition, Maranon’s approval process provided us with the high degree of certainty we needed to manage the seller’s expectations in a very difficult debt environment.”

Tom Gregory, Managing Director and Co-Founder of Maranon Capital stated, “We are investing in leading middle market companies alongside private equity firms and management teams that have deep domain expertise and meaningful operating experience. We are looking forward to working with Novacap and the management owners at PKWARE.”

“The PKWARE transaction illustrates the strength of Maranon’s differentiated investment model,” added Demian Kircher, Managing Director at Maranon Capital. “While we have partnered with other senior debt providers, Maranon has the flexibility to underwrite and hold both senior and mezzanine debt using the same team of professionals.”

About Maranon Capital

Maranon Capital, L.P. provides senior financing, mezzanine debt and equity co-investments primarily for private equity-backed and non-sponsored middle market transactions. Maranon has the flexibility to structure a one-stop financing solution, stand-alone mezzanine debt or mezzanine debt in conjunction with senior debt participation. Maranon does not take control equity positions, but will consider a minority equity role. The firm is currently managing over $500 million of committed capital and has offices in Chicago, Illinois and Birmingham, Michigan. For more information about Maranon Capital please visit www.maranoncapital.com.

About PKWARE, Inc.

As the inventor and continuing innovator of the ZIP standard, PKWARE, Inc. (www.pkware.com) is a global technology leader known around the world as the expert in data compression and file management. With the launch of SecureZIP in 2005, PKWARE successfully entered the data security marketplace, combining ZIP compression and strong encryption to deliver a data-centric security solution. Today, SecureZIP is used by over 200 government agencies and 30,000 corporate entities, including 90% of the Fortune 100. Organizations in financial services, banking, government, healthcare, and retail use PKWARE solutions daily to protect sensitive data, meet compliance requirements, avoid liability risk, and reduce overall costs and operational overhead. PKWARE, a privately held company, was founded in 1986 and is based in Milwaukee, Wisconsin; additional offices are located in New York, Ohio and the United Kingdom. For additional information please visit www.pkware.com.

About Novacap Investments

Novacap is one of Canada's leading private equity firms with over $785 million of capital under management. Since 1981, the firm has helped middle market companies accelerate their growth and maximize their value. For additional information please visit www.novacap.ca.

About Grace Matthews

Grace Matthews, Inc., a Milwaukee, Wisconsin based investment bank, provides merger, acquisition and corporate finance advisory services to private and public companies. Over the past decade, Grace Matthews has successfully completed over 100 transactions on behalf of clients ranging from private middle market companies to domestic and foreign multi-nationals. For more detailed information in Grace Matthews, Inc. please visit www.gracematthews.com.

Maranon Capital, L.P.
Demian Kircher, 312-646-1203
Managing Director
dk@maranoncapital.com
or
Greg Long, 312-646-1204
Managing Director
gml@maranoncapital.com
or
Richard Jander, 248-220-1804
Principal
rtj@maranoncapital.com