Tennenbaum Capital Partners Completes Three Investments

SANTA MONICA, CALIFORNIA – December 6, 2004 - Tennenbaum Capital Partners, LLC, announced today that it recently completed investments totaling more than $200 million in three separate companies: Ahern Rentals, Inc., Integra Telecom, Inc., and Intentia International AB (XSSE: INT B). Tennenbaum Capital Partners has:

• Originated a $90 million term loan to Ahern Rentals, Inc., a leading equipment rental company with locations in seven Western states. The five-year term loan, secured by a second lien on Ahern’s rental equipment and other assets, will be used to replace vendor financing and to provide capital to fund further growth of the privately-held company. In addition, Tennenbaum Principal José E. Feliciano will be joining Ahern’s board of directors as an observer. Ahern’s rental equipment inventory includes more than 15,500 pieces of high-reach equipment, heavy equipment, hand tools, and lawn and garden tools offered to customers through 33 branches in Nevada, California, Arizona, Utah, Texas, Oregon, and Colorado. 


• Acquired $69 million of senior secured bank debt in Integra Telecom, a facilities-based integrated communications provider (ICP), primarily focused on serving small and midsized companies located in the business centers of Minnesota, North Dakota, Oregon, Utah, and Washington.  Integra owns and operates its own network, offering local, domestic and international long distance, high-speed Internet and data services, voice messaging, and numerous ancillary services. The financing will enable Integra to repay its existing credit facility and to provide the Portland, Oregon-based firm with additional liquidity to support the growth of its business.


• Originated a $50 million investment in Intentia International AB, a Swedish company listed on the Stockholm Stock Exchange, structured as a senior secured loan and a purchase of common shares to finance the company’s turnaround.  As part of the transaction, Tennenbaum Principal Steve Chang joins Intentia's board of directors.  Intentia is a leading global provider of business application software for middle-market enterprise customers.

“We look forward to building meaningful, lasting relationships with the management teams of Ahern, Integra, and Intentia,” said Mark K. Holdsworth, Managing Partner of Tennenbaum Capital Partners, LLC. “We believe we can add significant value to their solid businesses during the course of our investments and we are happy to be working with them.”

Holdsworth added that these recent deals illustrate the firm’s tremendous flexibility in crafting unique financing solutions across the capital structure of both privately held and publicly traded companies.

About Tennenbaum Capital Partners, LLC
Tennenbaum Capital Partners is a Santa Monica, California-based private investment firm managing more than $3.8 billion in assets through private funds. The firm’s investment strategy is based on a long-term, value approach, and it assists – both financially and operationally – transitional middle market companies in such industries as technology, healthcare, energy, aerospace, business services, retail, and general manufacturing. Tennenbaum’s core strengths include in-depth knowledge of equity and debt financing vehicles in the public and private markets, as well as a thorough understanding of special situations. These situations may include legal, operational or financial challenges; turnarounds, restructurings and bankruptcies; corporate divestitures and buyouts; and complex ownership changes. Tennenbaum Capital Partners is a registered investment advisor.

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