Advantage Capital invests $7.1 million in Allen Brothers, Inc.
Advantage Capital closes first major investment in connection with the recently enacted Illinois New Markets Development program
CHICAGO, December 30, 2009 – Advantage Capital Partners today announced that it has provided $7.1 million in financing to Chicago-based Allen Brothers, Inc., a leading supplier of USDA “Prime” grade beef. The funds will be used to support the company’s continued growth, with new job creation projected in coming months.
“The Allen Brothers financing marks the first significant investment that Advantage Capital has made in connection with the Illinois New Markets Development program,” said Mark B. Lewis, principal at Advantage Capital. “We were able to provide this established Chicago business with mezzanine financing to fill a financing gap, and provide liquidity. This level of financing would not have been possible without the New Markets program.”
Founded in 1893 in Chicago’s historic Union Stockyards, Allen Brothers has built a great reputation for providing high quality beef products to fine dining restaurants and direct-to-consumer channels. The company supplies prime aged cuts to many of the country’s top steakhouses, including Morton’s, Lawry’s and Delmonico’s. Allen Brothers works closely with top chefs around the country to provide exclusive gourmet offerings including heat & serve entrées and exceptional desserts.
“At Allen Brothers we have worked hard to build a brand that stands for quality, consistency and a high level of customer service,” said Robert Hatoff, chairman and CEO of Allen Brothers. “Like many businesses we have felt the effects of the economic downturn. The investment from Advantage Capital will provide Allen Brothers with the necessary working capital to ensure continued growth and profitability.”
“I’m pleased to see the Illinois New Markets Development program working in my district,” said St. Senator Antonio Munoz (D), Chicago. “The investment in Allen Brothers will not only ensure the company’s continued success, but the business growth will contribute to the economic viability and revitalization of the surrounding community.”
Representative Edward J. Acevedo (D), Chicago echoed those remarks. “It is vitally important to not only create jobs, but to keep jobs in our District. This program is essential for small business growth, job retention and job creation at a critical time in Illinois.”
Advantage Capital senior managing director Scott Zajac praised Rep. Art Turner and Senator James Clayborne for sponsoring the New Markets legislation – and recognized the Quinn administration for leading the way to efficiently administer the program so soon after its passage.
Advantage Capital, in participation with Old Second National Bank of Aurora, Ill., provided financing in connection with the Illinois New Markets Development program and the successful federal New Markets Tax Credit program. Both programs are designed to stimulate economic growth in communities that historically have been underserved by traditional sources of capital.
About Advantage Capital Partners
Advantage Capital Partners is a leading small business finance firm focused on providing growth capital and other investments supporting state and local economic development efforts. The firm’s typical forms of investment include expansion equity, mezzanine financing, senior and subordinated loans and government-guaranteed lending. With offices and partners in Chicago, St. Louis, New Orleans and other U.S. cities, Advantage has raised more than $1 billion in institutional capital since 1992 and invested in companies located in geographic areas underserved by traditional capital.
About Old Second National Bancorp, Inc.
Old Second National Bancorp, Inc. (the “Company”) is a financial services company with its main headquarters located in Aurora, Illinois. The Company is the holding company of Old Second National Bank, a national banking organization headquartered in Aurora, Illinois and provides commercial, treasury management and retail banking services, as well as trust and wealth management services. The Company has offices located in Cook, Kane, Kendall, DeKalb, DuPage, LaSalle and Will counties in Illinois. Old Second Bancorp’s stock is traded on NASDAQ under the symbol OSBC. Additional information concerning Old Second Bancorp can be accessed at www.oldsecond.com.