Fresno, CA - July 1, 2008
The Central Valley Fund ("CVF") is pleased to announce the sale of 100% of the membership interests of MuniServices, LLC ("MuniServices") to Portfolio Recovery Associates, Inc. (NASDAQ: PRAA), a full-service provider of outsourced receivables management and related services in the United States. MuniServices, who assists municipalities and other government organization in revenue optimization and compliance management, has been a part of CVF's portfolio since December 2006.
PRAA acquired MuniServices for a total purchase price of $24.6 million, with $22.5 million paid in cash at the close of the transaction and $2.1 million granted in the form of PRAA common stock. An additional $4.5 million in contingent stock payments are available if certain operating targets are hit in 2008 and 2009. The existing MuniServices management team has entered into long-term employment agreements with PRAA and the company will continue to operate in Fresno.
Ed McNulty, a Partner with CVF, stated, "We have had a very productive working relationship with the MuniServices management team over the last few years. From working with management to purchase the company from MBIA to strategizing on how to grow the business, this group has been a pleasure to work with."
Marc Herman, the President and Chief Executive Officer of MuniServices, said, "We appreciated the opportunity to work closely with this exceptional organization. MuniServices' relationship with CVF began as a traditional investor/lender-client relationship, but quickly evolved into a true strategic partnership. We looked to CVF not only for financial strength, but also for their operational expertise and business intelligence."
For more information, please see the PRAA press release:
http://biz.yahoo.com/iw/080624/0410066.html.
About The Central Valley Fund
The Central Valley Fund was established by the principals of Gael Partners, LLC to finance later stage growth through mezzanine and preferred equity investments. The fund has offices in Davis, CA and Fresno, CA; it is focused on making investments in California's Central Valley and throughout the state. For more information, please visit www.centralvalleyfund.com.
About MuniServices, LLC
MuniServices, founded in 1978, is a leading provider of innovative revenue enhancement and other related services to state and local governments. MuniServices serves more than 260 jurisdictions in California, Florida, Georgia, Pennsylvania, Texas and the District of Columbia. For more information, please visit www.muniservices.com.
