Stellus Capital Management, LLC Provides Unitranche Financing in Support of Eagle Merchant Partners’ Acquisition of Impact Home Services, LLC

Rhea-AI Summary

Stellus Capital Management provides financing for Eagle Merchant Partners' acquisition of Impact Home Services, an independent owner and operator of franchises within Neighborly.

Positive

• Stellus Capital Management provides senior debt financing and equity co-investment in support of the acquisition.
• Impact Home Services operates franchises for leading brands in Metro Atlanta and Georgia, positioning the Company for long-term success.
• Eagle Merchant Partners' breadth of investing experience in the franchisee sector will contribute to the Company's continued growth.

Negative

• None.

HOUSTON, & CHARLOTTE, N.C.--(BUSINESS WIRE)-- Stellus Capital Management, LLC (“Stellus”) announced today that its affiliates acted as administrative agent and provided senior debt financing and an equity co-investment in support of Eagle Merchant Partners’ (“Eagle Merchant”) acquisition of Impact Home Services, LLC (“Impact” or the “Company”), an independent owner and operator of franchises within Neighborly, the world’s largest home services company.

Formed in 2021 by Shirin Kanji, Impact operates franchises for leading brands, including Mr. Rooter Plumbing, Mr. Electric, and Precision Door Service in Metro Atlanta and broader Georgia, servicing both residents and commercial customers.

Brady Summer, Vice President at Eagle Merchant, said, “We are pleased to partner with Stellus on this exciting opportunity and appreciate their support and flexibility during the financing process. We look forward to continuing our strong relationship with Stellus going forward.”

“We appreciate the opportunity to partner with Eagle Merchant and the entire Impact team,” said Bill Haverland, Principal at Stellus. “We believe the Company’s leading market position in Georgia, strong management team, and favorable demand drivers position the Company for continued long-term success. Eagle Merchant’s breadth of investing experience in the franchisee sector will serve as a strong foundation for the Company’s continued growth which Stellus looks forward to supporting.”

About Stellus Capital Management

Stellus Capital Management (“Stellus”) is one of the longest-tenured direct lenders specializing in senior secured loans in the lower middle market. Formed within the D.E. Shaw Group in 2004, Stellus spun out in 2012 and today manages $2.9 billion across various investment vehicles including closed-end institutional funds, a public BDC (NYSE: SCM), and a perpetual non-traded private BDC. Stellus is a single strategy firm and its founding partners have invested together in the lower middle market for 19+ years with a track record of $8.5bn deployed across ~350 transactions. Stellus is headquartered in Houston, TX with offices in the Washington D.C. area and Charlotte, NC. Learn more at stelluscapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230517005215/en/

Sarah Bowes

BackBay Communications

(860) 805-1759

sarah.bowes@backbaycommunications.com

Source: Stellus Capital Management, LLC

FAQ

Who provided financing for Eagle Merchant Partners' acquisition of Impact Home Services?

Stellus Capital Management provided financing.

What does Impact Home Services do?

Impact Home Services is an independent owner and operator of franchises within Neighborly.

Which brands does Impact Home Services operate franchises for?

Impact Home Services operates franchises for leading brands such as Mr. Rooter Plumbing, Mr. Electric, and Precision Door Service.

Where does Impact Home Services operate?

Impact Home Services operates in Metro Atlanta and broader Georgia.

What is the expectation for Impact Home Services' long-term success?

The Company's leading market position in Georgia, strong management team, and favorable demand drivers position it for continued long-term success.

What is the significance of Eagle Merchant Partners' investing experience?

Eagle Merchant Partners' investing experience in the franchisee sector will contribute to Impact Home Services' continued growth.