The New Release

Brookwood Advises on $45 Million Financing for The New Release 

We are pleased to announce that Brookwood Associates advised The New Release ("TNR"), a portfolio company of Laminar Direct Capital (a unit of D.E. Shaw), Celerity Partners and Chapton Partners, on a $35 million senior and subordinated debt facility provided by MCG Capital Corporation and a $10 million equity investment provided by MCG and the existing shareholders. TNR is the nation's largest owner / operator of DVD rental kiosks located in grocery stores. This growth financing supported TNR's national roll-out of kiosks in Kroger stores.  Highlights of this assignment include:

Repeat Client: This is Brookwood's second transaction for TNR. Brookwood successfully raised $10 million of growth equity for TNR on attractive terms in December 2005.   

Immediate Need for Capital:  In July 2006, TNR secured the contract to deploy its DVD rental kiosks in Kroger grocery stores nationwide. TNR challenged Brookwood to run a fast-paced process to secure over $25 million required to support the rapid deployment timeline. 

Thorough, Effective Process: Brookwood quickly revamped TNR's prior equity-oriented materials into a debt-focused document emphasizing: (i) the compelling unit economics, track record and underlying cash flows; (ii) TNR's leading market position, management strength and infrastructure; and (iii) the sustainability of the DVD rental industry.  Brookwood tapped its extensive network of traditional senior debt, mezzanine and private equity sources, plus emerging hedge fund and one-stop capital providers.

Excellent Results: The expedited process generated numerous interested investors. Ultimately, strong capital-provider interest allowed TNR to close on a larger $35 million debt facility and an attractively priced $10 million equity round. In addition, TNR adds a new financing partner in MCG that offers substantial resources to support future growth. 

This transaction is another example of Brookwood's ability to effectively position and market a rapidly growing business in a niche market segment and to exceed the goals of our client. We welcome the opportunity to speak with you about our debt and equity financing advisory capabilities - as well as our M&A, bankruptcy / restructuring advisory and fairness opinion expertise.