Clockwork Home Services Secures $120 Million in Financing Capital from Prudential Capital Partners and Wachovia Bank
Clockwork Plans to Use Proceeds in Part to Accelerate Growth And Acquisitions
SARASOTA, Fla.--(BUSINESS WIRE)--Clockwork Home Services, Inc. (Clockwork), one of North America's fastest-growing operators of home services franchises, announced that it has secured a total of $120 million in financing from Prudential Capital Partners, L.P. II, Wachovia Bank, N.A. and Prudential Capital Group.
Clockwork used proceeds from this transaction primarily to refinance existing debt, fund additional acquisitions and provide partial shareholder liquidity through a special dividend.
Clockwork indicated that the total one-stop financing consisted of $25 million of senior subordinated notes provided by Prudential Capital Partners, L.P. II, and a $70 million senior revolving credit facility (with a $25 million uncommitted accordion) provided by Wachovia Bank, N.A. and Prudential Capital Group.
"Clockwork is well positioned for growth given the diversification of our home services franchise operations, our expanding geographic footprint and our growing reputation for excellent customer service," said James Abrams, CEO, Clockwork Home Services, Inc. "This new capital facility from Prudential Capital and Wachovia will help us further accelerate our growth as we move forward."
Since Clockwork's inception in 1998, the company has experienced strong organic growth in addition to growth from the acquisition of well managed and profitable home services businesses resulting in an increase in total revenue from $59.8 million in 2005 to $111.9 million in 2006 and in 2007 to $182.3 million.
In addition, Clockwork recently announced plans to expand its Benjamin Franklin Plumbing, One Hour Air Conditioning & Heating and Mister Sparky Electrical home services franchises into Canada.
About Clockwork Home Services
Clockwork Home Services, Inc. is dedicated to improving the operations, efficiency, customer service and profitability of contractors in the home services industry in North America through affinity group membership and nationally branded franchises. Its companies include Mister Sparky® Electrical Franchising, Benjamin Franklin Plumbing® Franchising, One Hour Air Conditioning & Heating® Franchising, BuyMax®, Plumbers' Success International®, Electricians' Success International®, AirTime 500™, Roofers' Success International®, Success Academy®, AirTime Canada™ ULC, SuccessWare, Inc.® and company-owned One Hour® operations in Nevada, Florida, Tennessee, Minnesota, Indiana, California, Ohio, South Carolina, Colorado and throughout Canada; company-owned Benjamin Franklin Plumbing® operations in Indiana, Tennessee, Minnesota, Ohio, California and Colorado; and company-owned Mister Sparky® operations in Colorado, Indiana and Georgia. In 2007, Clockwork was ranked #822 on Inc. magazine's Inc. 5,000® list of fastest-growing private companies in the United States. For more information, visit www.clockworkhomeservices.com.
About Prudential Capital Group
Prudential Capital Group has been a leading provider of private capital to companies for more than 70 years, investing private debt and equity securities worldwide. Prudential Capital manages a portfolio of more than $42 billion (as of 12/31/07). The global regional office network has locations in Atlanta, Chicago, Dallas, Frankfurt, London, Newark, N.J., New York, and San Francisco. For more information, please visit www.prudentialcapitalgroup.com.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $648 billion of assets under management as of December 31, 2007, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping individual and institutional customers grow and protect their wealth. The company's well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit www.prudential.com.
Wachovia Corporation (NYSE:WB) is one of the nation's largest diversified financial services companies, with assets of $808.9 billion and market capitalization of $53.8 billion at March 31, 2008. Wachovia provides a broad range of retail banking and brokerage, asset and wealth management, and corporate and investment banking products and services to customers through 3,300 retail financial centers in 21 states from Connecticut to Florida and west to Texas and California, and nationwide retail brokerage, mortgage lending and auto finance businesses. Globally, clients are served in selected corporate and institutional sectors and through more than 40 international offices. Our retail brokerage operations under the Wachovia Securities brand name manage more than $1.1 trillion in client assets through 18,600 registered representatives in 1,500 offices nationwide.