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O2 Sponsor Finance Provides Senior Secured Credit Facilities to Support Encore Consumer Capital in its Acquisition of Chalet Desserts

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)

Rhea-AI Summary

O2 Sponsor Finance, a division of Old Second National Bank (NASDAQ: OSBC), has announced the provision of senior secured credit facilities to support Encore Consumer Capital in acquiring Chalet Desserts. The announcement, made on July 9, 2024, highlights Chalet Desserts as a specialty manufacturer of frozen bakery desserts based in Sacramento, CA. Chalet’s products are distributed through supermarkets, convenience stores, and foodservice markets. Nick O'Brien, Senior VP at O2 Sponsor Finance, expressed enthusiasm about supporting Chalet's growth, acknowledging its leading category position, manufacturing capabilities, and strong management team.

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AI-generated analysis. Not financial advice.

Positive

  • Provision of senior secured credit facilities by O2 Sponsor Finance supports strategic acquisitions.
  • Chalet Desserts is recognized as a category leader with extensive manufacturing capabilities.
  • Partnership is expected to foster growth for Chalet Desserts.

Negative

  • Potential financial strain from providing senior secured credit facilities.

News Market Reaction – OSBC

+1.52%
1 alert
+1.52% News Effect

On the day this news was published, OSBC gained 1.52%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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CHICAGO, IL / ACCESSWIRE / July 9, 2024 / O2 Sponsor Finance, a division of Old Second National Bank (NASDAQ:OSBC), today announced that it provided senior secured credit facilities to support Encore Consumer Capital ("Encore") in its acquisition of Chalet Desserts ("Chalet").

Based in Sacramento, CA, Chalet is a specialty manufacturer of frozen bakery desserts and baked good inclusions that are sold into the in-store bakery at supermarkets and convenience stores as well as foodservice and ingredient end-markets.

"We are excited to support Encore Consumer Capital's acquisition of Chalet. Chalet is a category leader with extensive manufacturing capabilities and an impressive management team. We look forward to supporting Chalet's growth. " said Nick O'Brien, Senior Vice President, O2 Sponsor Finance.

About Chalet Desserts: Chalet, based in Sacramento, CA, is a specialty manufacturer of frozen bakery desserts and baked good inclusions that are sold into the in-store bakery at supermarkets and convenience stores as well as foodservice and ingredient end-markets. For more information, please visit: www.chaletdesserts.com.

About Encore Consumer Capital: Encore Consumer Capital is a private equity investment firm focused on the consumer products industry. The firm has raised over $900 million in committed capital and invested in over 40 companies in the sector. Encore's current and prior investments include food and beverage manufacturers and marketers, pet products companies, personal care/beauty companies, and food distribution companies. The firm targets companies with between $10 million and $150 million in annual revenues where Encore's strong expertise in strategy development, brand marketing, manufacturing and supply chain optimization, and distribution expansion can drive performance. For more information, please visit: www.encoreconsumer.com.

About O2 Sponsor Finance: O2 Sponsor Finance is a national provider of cash flow-based loans to lower middle market businesses with typically $10 to $100 million in revenue and between $2 million and $10 million in EBITDA. O2 Sponsor Finance focuses on supporting private equity sponsors, independent sponsors and family offices in their acquisition or recapitalization of lower middle market companies. For more information, please visit www.O2sponsorfinance.com.

About Old Second Bancorp, Inc.: Old Second Bancorp, Inc., headquartered in Aurora, Illinois, is the bank holding company for Old Second National Bank, which celebrated 150 years of operation in 2021. Old Second's common stock trades on The NASDAQ Stock Market under the symbol "OSBC". More information about Old Second is available by visiting the "Investor Relations" section of its website www.oldsecond.com.

Old Second National Bank, Member FDIC, was recently named number one among "Best Bank in Illinois 2021." This was the second straight year the bank was selected by customers for the award. Awards are determined based on a survey of over 25,000 U.S. customers who rate banks on overall satisfaction as well as trust, terms and conditions, branch services, digital services and financial advice.

As of March 31, 2024, Old Second has approximately $5.6 billion in assets, $4.6 billion in deposits and $4.0 billion in loans.

Contact:

Bradley S. Adams EVP, Chief Operating Officer and Chief Financial Officer (630) 906-5484

SOURCE: Old Second Bancorp Inc.



View the original press release on accesswire.com

FAQ

What is the significance of Old Second National Bank's (OSBC) involvement in the acquisition of Chalet Desserts?

Old Second National Bank's O2 Sponsor Finance division provided senior secured credit facilities to support Encore Consumer Capital's acquisition of Chalet Desserts, highlighting their role in strategic financial partnerships.

Who acquired Chalet Desserts?

Encore Consumer Capital acquired Chalet Desserts with the support of senior secured credit facilities from O2 Sponsor Finance.

What industry does Chalet Desserts operate in?

Chalet Desserts operates in the specialty manufacturing of frozen bakery desserts and baked good inclusions, catering to supermarkets, convenience stores, and foodservice markets.

How does O2 Sponsor Finance view its support of Chalet Desserts?

O2 Sponsor Finance views its support as an opportunity to foster Chalet Desserts' growth, recognizing the company’s leading market position and robust manufacturing capabilities.

What is the role of Nick O'Brien in this acquisition?

Nick O'Brien, the Senior Vice President at O2 Sponsor Finance, expressed excitement about the partnership and the growth prospects for Chalet Desserts.