Caltius Mezzanine Provides $20.0 Million to Harris Research, Inc.

September 20, 2011

Los Angeles, CA, September 2011 – Caltius Mezzanine is pleased to announce the recent closing of a $20.0 million financing package to support Baird Capital Partners’ (BCP), acquisition of Harris Research, Inc. (HRI) from The Home Depot ®.

Based in Logan, Utah, HRI is a leading franchisor of in-home consumer services in the United States and internationally. The Company’s Chem-Dry brand is the world’s largest provider of carpet and upholstery cleaning services with approximately 4,000 franchises worldwide. Chem-Dry will continue its lead generation program with The Home Depot. HRI’s unique N-Hance wood cabinet and flooring renewal service features more than 200 franchises. N-Hance is part of The Home Depot’s robust kitchen renovations offering and will continue to be available through The Home Depot retail locations in the United States and Canada, as well as directly to consumers.

Caltius’ $20.0m financing package consisted of $18.0 million of subordinated notes and $2.0 million of preferred and common equity.

“We are impressed with HRI’s management, franchise model, brand and outstanding customer service,” said Gavin Bates, Principal of Caltius Mezzanine. “We are excited to partner with BCP in their plans to grow HRI.”

“Caltius provided BCP with a committed financing solution that enabled a timely close in a competitive process,” noted Tom Costello, a Principal of BCP.

“This is our first transaction with Caltius and we look forward to a successful partnership.” This transaction reflects Caltius Mezzanine’s ongoing commitment to serve both the private equity and investment banking communities in their respective transaction needs.

“Having Caltius provide the subordinated notes for the acquisition gave us comfort as we considered options for our client,” added Bo Briggs, Managing Director at Croft & Bender, who advised the seller.

Based in Los Angeles, Caltius Mezzanine provides innovative capital solutions in amounts of $10.0 to $75.0 million to middle market companies throughout North America. Since its founding in 1997, Caltius Mezzanine has invested over $700 million in a broad range of industries to support acquisitions, recapitalizations, buyouts, and organic growth. Caltius Mezzanine is currently investing out of its fourth fund, Caltius Partners IV, LP, a $500 million fund that closed in May 2008. For more information or to refer an investment opportunity, please call us at (310) 996-9585.