Levine Leichtman Capital Partners Leads $135 Million Refinancing for Falcon Products

Press Release | Source: Levine Leichtman Capital Partners, Inc.

LOS ANGELES, Oct. 6, 2004 -- Levine Leichtman Capital Partners, a Los Angeles-based private equity firm, announced today that it has led a group of investors in a $135 million refinancing for Falcon Products, Inc. (NYSE: FCP - News), a leading manufacturer of commercial furniture based in St. Louis, MO. The Company used the new investment to refinance its existing revolver and term loans.

Levine Leichtman Capital Partners is a Los Angeles, California private equity firm that manages in excess of $1 billion in institutional capital. Founded in 1984, the investment firm makes structured equity investments in industry leading middle market companies owned and managed by entrepreneurs. The firm enhances shareholder value by providing significant post investment financial assistance to its portfolio companies. Successful investments by Levine Leichtman Capital Partners include Media Arts Group Inc., Jon Douglas Real Estate Services Group, Inc., Consumer Portfolio Services, Inc., the Quizno's Corporation and CiCi's Pizza, Inc.

Arthur E. Levine, founding general partner of Levine Leichtman Capital Partners remarked, "We are pleased to have closed the investment in Falcon within the short timeframe requested by the Company. Falcon is now well positioned to achieve its growth plans and we look forward to partnering with Frank Jacobs and his team to build long term value."

Falcon Products, Inc. is the leader in the commercial furniture markets it serves, with well-known brands, the largest manufacturing base and the largest sales force. Falcon and its subsidiaries design, manufacture and market products for the hospitality and lodging, food service, office, healthcare and education segments of the commercial furniture market. Falcon, headquartered in St. Louis, Missouri, currently operates 8 manufacturing facilities throughout the world and has approximately 2,100 employees.

Franklin A. Jacobs, Chairman and Chief Executive Officer of Falcon Products, stated, "This transaction is the result of months of careful evaluation and review of a number of opportunities and we are excited about both the terms of our arrangement as well as the partnership we now have with Levine Leichtman Capital Partners. This new financing will provide significant new liquidity needed to support our current business and help us take advantage of the rebounding economy."

FOR FURTHER INFORMATION
LEVINE LEICHTMAN CAPITAL PARTNERS:
Jeffrey Kabot
(310) 275-5335