Researchers applaud US-Cuba accord

A new era in U.S.-Cuba relations could be a boon for scientific cooperation between the two nations. The diplomatic breakthrough between the Cold War foes, announced separately today by U.S. President Barack Obama and Cuban President Raul Castro, is expected to immediately loosen restrictions on U.S. and Cuban scientists getting together for joint research. It may also pave the way for U.S. organizations to sponsor workshops and meetings in Cuba and to export state-of-the-art instruments to Cuba, activities now essentially prohibited under U.S. law.

“This is huge news for science,” says David E. Guggenheim, president of Ocean Doctor, a nonprofit that has sponsored marine research with Cuba. “These policy changes will go a long way to ensure a more robust science relationship,” said Alan Leshner, CEO of AAAS, in a statement.  (AAAS  publishes ScienceInsider and has been working in recent years to promote science diplomacy with Cuba.) The new Obama administration policy, Leshner says, should boost collaboration on such topics as the spread of emerging pathogens like the chikungunya virus and atmospheric research on hurricanes in the Gulf of Mexico.

The U.S. has imposed a web of sanctions, including a trade embargo, on Cuba for more than half a century. The U.S. Treasury Department prohibits most expenditures by U.S. citizens in Cuba, including tourism. In 2009, however, the agency relaxed its regulations to allow U.S. scientists to conduct research visits to Cuba under a general license. That rule is unchanged.

But the watershed agreement should still dissolve obstacles to collaboration, predicts Abel Valdivia, a Cuba-born marine ecologist at University of North Carolina, Chapel Hill. The “huge difference,” he says, will be on the Cuban side, which has been very slow to process licenses for scientific ventures. Valdivia thinks pressure from the U.S. may incentivize Cuba to speed up the permitting process.

More payoffs may come down the road. As part of a raft of U.S. measures, the Obama Administration is initiating a review that could remove Cuba from the list of state sponsors of terrorism. That could remove a major impediment to research: the need for an export license to bring scientific equipment to Cuba. And AAAS and other groups are seeking guidance from the U.S. government on whether U.S. organizations will be allowed to organize workshops and meetings in Cuba.

Scientists are already celebrating.  “It’s such an emotional day,” says Guggenheim, who has made 81 trips to Cuba. “I was actually just out marching in the street with Cuban students celebrating all of this.”

Obama’s plans are likely to face stiff bipartisan opposition in Congress. “Congress must see a greater political opening in Cuba before lifting the embargo,” said Representative Eliot Engel (D-NY), the senior Democrat on the House Foreign Affairs Committee, in a statement.  “This Congress is not going to lift the embargo,” vowed Senator Marco Rubio (R-FL), the incoming head of the Western Hemisphere and Global Narcotics Subcommittee of the Senate Foreign Relations Committee, at a press conference. On Twitter, Sen. Lindsey Graham (R-SC), who will and appropriations panel overseeing foreign affairs funding, wrote the he would “do all in my power to block the use of funds to open an embassy in Cuba.” In a statement, House Speaker John Boehner (R-OH) said that “relations with the Castro regime should not be revisited, let alone normalized, until the Cuban people enjoy freedom.”

White House officials, however, have suggested that some actions could be taken without Congressional approval.

With reporting by David Malakoff

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The Quest for Craft Beer Equality: Georgia’s Fight to Thrive

In 45 states of this country, you can walk into the on-site taproom of your local brewery and buy a beer. In nearly as many, if you find something you like, you can pick up a six-pack or growler to enjoy in the comfort of your own home. In those 45 states, neither of these liberties is considered exceptional. Rather, they’re obvious. But not so in Georgia.

Along with Mississippi, West Virginia, North Dakota and Hawaii, Georgia is one of only five remaining states that doesn’t allow direct sales of any kind from breweries. Unsurprisingly, the craft beer market suffers as a result—despite the fact that cities such as Atlanta and Athens are home to exceptional brewers, the state operates as a net craft beer importer, with two-thirds of all craft beer consumed there produced outside state lines. The consumers are there, and thirsty. State law, on the other hand, is still rooted in the dark days of prohibition. And if things are going to change, the state’s craft brewers guild is going to need your help.

“For people who visit from outside Georgia, it’s a bit of a shock,” said Nancy Palmer, the Executive Director of the Georgia Craft Brewer’s Guild. “They expect to be able to visit the local brewery and buy a beer. Almost everywhere else in the country, they can.”

Palmer is one of the voices leading Georgia’s charge toward equality and reform of antiquated laws when it comes to the state’s breweries. Heading a young, youth-driven organization, she has the support of Georgia’s burgeoning craft beer scene, perhaps best encapsulated in Atlanta. In Georgia’s biggest city, craft beer is exploding, with restaurants and bars simultaneously coming to the realization that there are exceptional products being produced in their backyard. Drinkers too have flocked to craft beer as they have in so many other large American cities, but there’s a problem: There’s simply not enough locally produced beer to go around, and the law is directly to blame.

“Compared to other states, we rank 44th in terms of economic impact per capita from beer,” Palmer said. “Georgia is the 8th largest state in terms of population, but we’re nowhere close to where we should be in terms of economic impact. If Georgia was average, we would have about 75 breweries statewide. Currently, it’s about 38.”

For reference, that’s fewer breweries than in the greater Asheville, NC area. A single, mid-sized North Carolina city has more breweries than the entire state of Georgia, and certainly more beer-related tourism to boot. The state is literally surrounded on all sides by states with more progressive beer laws: Alabama, Tennessee, North Carolina, South Carolina and Florida all allow direct sales to consumers at breweries. All Georgians want is the right to stay competitive with their neighbors and help their small businesses thrive.

“There’s a huge financial upside to small breweries being able to sell directly to the public,” Palmer said. “Direct sales would only account for a couple percentage points of total production, but the profit margin is tremendous on those sales and makes all the difference to a small brewery trying to grow and improve their cash flow. That can make or break a new brewery.”

At this point, you’re likely wondering who would reasonably be against legislation to modernize the state’s brewery laws, and the answer is “nobody.” No one would reasonably be against it … and yet, if you look hard enough, you will find them. From the practical (money) to the moral (God hates beer), state legislators will cite what they will as reasons the state shouldn’t embrace a thriving industry, create new jobs and increase tourism. The fact that some of those legislators receive campaign contributions from distributorships should not be confused as somehow related to the issue—to draw that conclusion would be absurd and off-topic in the extreme, so shame on you.

Regardless, the winds of change are blowing. At this point, it’s essentially impossible to deny craft beer’s ascendancy—it’s here. It’s here, whether or not legislators want it and whether or not the mega brewers want it. The people have spoken, and they want more great beer, produced by their own community. Palmer believes that there are few who haven’t come around to the idea at this point.

“In the past, wholesalers may have been against this, but today is a new day,” she said. “The craft brewing industry here has grown to such an extent that I believe the wholesalers know this is part of moving forward. Almost every craft brewery I know of, their distributor wishes they could make more beer, and direct sales will help them do that. We do believe that a rising tide lifts all boats.”

As in many other U.S. states, Georgia operates under a strict “three tier” system that regulates the flow of beer from brewery to distributor to retailer. Detractors claim that the brewer’s desire to sell its product on its premises threatens that system, but the Brewers Guild begs to differ. And they can currently point to 45 other states where the system is working just fine. The facts and economic data are all overwhelmingly in favor of modernizing the law—everyone ultimately benefits.

And so, the Georgia Craft Brewer’s Guild is doing something about it, with the monetary help of the community and craft beer advocates around the country. Their currently ongoing Indiegogo campaign is seeking to raise roughly $30,000, all of which will be used for lobbying in the state’s General Assembly. They seek to give their state a fighting chance to compete with its neighbors and allow business to thrive there as it has elsewhere. It’s an exceedingly reasonable request.

“We don’t want to be retailers of distributors,” Palmer said. “What we’re asking for is not new territory. This isn’t an experimental move, it’s something that’s been legal in Florida for 50 years. This is Georgia staying competitive and modern. We’re not asking for a tax break. We’re not asking for grant money. We’re not asking for anything beyond the freedom to sell the product we make.”

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150 years after Fort Fisher fight, Civil War is big business

FORT FISHER | Christmas Eve came with a bang 150 years ago in Southeastern North Carolina.

At 1:46 in the morning on Dec. 24, 1864, the USS Louisiana — an aging, flat-bottomed powder ship stuffed with explosives — blew up some 600 yards from Fort Fisher, the massive Confederate earthworks that guarded the approaches to Wilmington.

The blast — a pet project of Union Maj. Gen. Benjamin Butler — was supposed to leave a massive hole in those earthworks, knocking down cannons and killing or stunning much of the garrison.

It was loud enough to be heard in Wilmington, where it awoke worried Confederate officers, and by some accounts as far away as Beaufort, some 70 miles to the north.

But it didn’t work. An undertow and an offshore breeze had pulled the Louisiana off course. Its captain wrongly thought he was just 300 yards offshore when he set the fuses and abandoned ship. The blast left a vast pillar of smoke, but onshore, as historian Rod Gragg noted in his book “Confederate Goliath,” not even the marsh grass was disturbed.

A group of teenaged Junior Reserves, camping on the beach, were jarred from their tents “like popcorn from a popper,” in the words of one witness, frightened but otherwise unhurt. There were no other casualties.

A battle remembered

That was the prelude to the first, unsuccessful assault on Fort Fisher, which would fall to the Federals two weeks later.

Ironically, the Fort Fisher State Historic Site will be closed Dec. 24-26 for the Christmas holiday on the 150th anniversary of that first battle. The site and local re-enactors held their official celebration Saturday, with tours, living-history demonstrations and the firing of the fort’s 32-pound replica seacoast cannon. 

“This is kind of our preview for the big one next year,” said site manager Jim Steele.

The “big one” is the 150th anniversary of the second, bigger battle of Fort Fisher, Jan. 13-15, 1865 — in the words of historian Rowena Reed, the largest amphibious operation in American history until the Allied invasion of Normandy, nearly 80 years later.

A Union fleet of nearly 60 vessels under Adm. David D. Porter pounded the fort from the sea, while a force of some 10,000 soldiers came ashore near Myrtle Sound. Units from this force would finally overcome the fort’s 1,500 defenders on Jan. 15, attacking from the northern, landward side.

Locals are planning a major celebration. The Friends of Fort Fisher, the site’s nonprofit support group, is holding a reunion Jan. 14-15 for descendants of soldiers, sailors and Marines who fought on either side in the two battles. 

“We thought we’d be lucky to have 50 or 60 show up,” said Paul Laird of the Friends. 

Instead, more than 150 participants have already registered. 

The descendants will be treated to two days of VIP tours, lectures, presentations by conservators from the N.C. Museum of History in Raleigh on how to save their families’ papers and memorabilia, and music, much of it arranged by reunion chairman John Golden.

Descendants will also be encouraged to write down their family stories and family traditions about what Fort Fisher was like, Laird said.

Following on the weekend of Jan. 17-18 will be the official anniversary observance, titled “Nor Shall Your Glory Be Forgot.” (The line comes from the Theodore O’Hara poem “The Bivouac of the Dead.”) More than 300 re-enactors will be involved in two separate re-stagings, on Saturday and Sunday, of the final assault on the fort (see sidebar). 

More than 7,500 people turned out for 145th anniversary observances, Steele said, so state officials are expecting between 10,000 and 15,000 to visit during the two-day event next month.

A piece of history

Outside of New Hanover County, Fort Fisher has sometimes seemed like one of the Civil War’s best-kept secrets. Most histories lend it little space, focusing on bigger, splashier battles such as Gettysburg or Shiloh. Ken Burns’ “Civil War” movie summed it up in barely a sentence. 

Steven Spielberg’s 2012 film “Lincoln,” however, had an extended scene showing President Lincoln and his Cabinet members following the course of the battle from the War Department’s telegraph room in Washington.

In fact, the fort was the key to Wilmington, the Confederacy’s last major commercial port and a key to its supply line, said Chris Fonvielle, an associate professor of history at the University of North Carolina Wilmington. Hundreds of blockade runners slipped under Fort Fisher’s protective guns through the Union blockade and into Wilmington. There, their precious cargoes of arms, ammunition, medicines and other vital supplies were loaded onto the Wilmington Weldon railroad and rushed north to the Confederate capital, Richmond.

In a famous letter to Col. Lamb, Gen. Robert E. Lee, commander of the Army of Northern Virginia, wrote that “if Wilmington falls, I cannot maintain my army.” 

“By then, Wilmington was the Confederacy’s most important city,” Fonvielle said.

In the end, Lee surrendered on April 9, 1865, at Appomattox Court House, less than 90 days after Union forces seized the fort.

History is money

One hundred fifty years later, Fort Fisher is still valuable — this time, as a tourist attraction.

According to Steele, some 600,000 visitors, on average, pass through the Fort Fisher historic site each year. That’s considerably fewer than the 1.2 million visitors to the Gettysburg battlefield in 2013, but more than the 200,000-plus annual visitors to the Battleship North Carolina Memorial or the 77,000 annual visits that the Bentonville battlefield near Newton Grove – North Carolina’s other big Civil War battle site — received in 2010.

Assessing the impact of all those visits can be a bit of a challenge. Neither the local Convention and Visitors Bureau nor the Pleasure Island Chamber of Commerce keep statistics on Civil War tourism.

Still, some numbers tell a story. Roughly 75 percent of Fort Fisher’s visitors come between Memorial Day and Labor Day, Steele said. Of these summer visitors, about half come from outside North Carolina.

“Civil War sites are tourist magnets,” said Mary Koik, a spokesman for the Civil War Trust, a nonprofit group devoted to the preservation of battlefield sites. “Numerous studies have shown that people who visit historic sites, and particularly battlefields, are the ideal guests: They tend to spend more in local shops and restaurants and stay longer in local hotels.”

One economic impact study by the Civil War Trust found that a typical family of four spends $1,000 during its visit to a Civil War site. Visit NC, the state tourism agency, found that out-of-state parties to coastal North Carolina typically spend $1,179 on an overnight visit. 

Richard Lewis, a spokesman for the state-run Virginia Tourism Corporation, said his agency had found that families which include at least one Civil War stop in their visits tend to spend more than ordinary tourists and to stay in the area longer.

The 145th anniversary of the Battle of Bentonville in 2010 drew more than 50,000 visitors to the relatively isolated area and pumped an estimated $5 to $6 million into the local economy, according to the Civil War Trust.

A 2013 study by the UNC Center for Competitive Economies found that tourism to the Battleship North Carolina contributed nearly $8 million to the local economy and generated an estimated 303 jobs in the area. As already noted, Fort Fisher’s visitation is nearly three times that of the battleship.

The 150th anniversary of the Civil War has boosted attendance at all the state’s related sites, said Mike Hill, co-chairman of the Civil War 150 Committee in the state Department of Cultural Resources.

“But it’s not like it was during the centennial” in 1961-65, Hill said. 

Back then, he speculated, more people remembered grandparents or other relatives who had actually fought in the war. (The last known Civil War veteran died in 1956.) Also, a backlash to the civil rights movement might have sparked pro-Confederate sentiment in the South.

 

Bound for ‘Glory’

On Jan. 17 and 18, the Fort Fisher State Historic Site in Kure Beach will mark the official 150th anniversary of the Battle of Fort Fisher with an observance that’s being called titled “Nor Shall Your Glory Be Forgot.” More than 300 re-enactors will be involved in two separate re-stagings of the final assault on the fort on that Saturday and Sunday.

Edwin C. Bearrs, former chief historian of the National Parks Service and a familiar figure from his commentary in Ken Burns’ “The Civil War,” will be keynote speaker, and a number of other historians, including Rod Gragg (“Confederate Goliath”), Chris Fonvielle (“Faces of Fort Fisher”) and Richard Triebe (“Fort Fisher to Elmira”) will give talks.

A historical unit from Camp Lejeune will give living history demonstrations on the role of U.S. Marines in the battle, while another re-enactor unit will illustrate the role of the Confederate “torpedo” (mine) service on the Cape Fear River. 

The site will unveil a new exhibit on Col. William Lamb, the fort’s commander for much of the war, and new interpretative markers on the site’s hiking trail. An evening “lantern tour” will be among the many tours available, and more demonstrations will show off garrison life, the infantry manual of arms and artillery firing. The Huckleberry Brothers and the Shanty Men will provide period music.

For more information on the observance, call 910-458-5538 or go to nchistoricsites.org/fisher

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Developers almost ready for amateur sports complex in Charlotte

A company that wants the city’s help to build an amateur sports complex next to Bojangles’ Coliseum wants to sign a formal deal with city leaders by January 20.
WCNC

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Man Survives Driving Off Cliff, 17 Hours Trapped Underneath Vehicle

PHOTO: Joseph Woodrings vehicle fell at least 60 feet when he went off the road in Boone, N.C., on Tuesday night, according to State Highway Patrol.

A man in North Carolina survived 17 hours pinned underneath his vehicle after he fell asleep behind the wheel and drove off a cliff, authorities said.

Joseph Woodring’s vehicle fell at least 60 feet when he went off the road in Boone, N.C., on Tuesday night, according to State Highway Patrol.

PHOTO: Joseph Woodrings vehicle fell at least 60 feet when he went off the road in Boone, N.C., Oct. 28, 2014, according to State Highway Patrol.

The crash launched Woodring, 21, from his vehicle, which landed upside down and pinned him underneath it. He was found Wednesday afternoon.

“He was lying on his side. Both legs were pinned under,” Dale Watson told ABC News affiliate WSOC. “He wanted some water so I give him some water.”

Watson said Woodring told him he fell asleep while driving. It took rescue crews an hour to raise the vehicle off him.

Woodring was taken to the hospital with two broken legs, according to the State Highway Patrol.

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New aerial adventure park to open in WNC – Asheville Citizen

Construction is underway on High Gravity Adventure, a new aerial adventure park located next to Tweetsie Railroad in Boone.

The new attraction will have multiple components for children and adults. High Gravity Adventure is scheduled to open this spring in conjunction with the opening of Tweetsie Railroad¹s 2015 season on April 10.

High Gravity Adventure will be comprised of three main components, including the Adventure Course, with three levels of challenges that progress in difficulty 20 feet, 35 feet and 50 feet off the ground.

In all, more than 50 different challenges will make up the Adventure Course.

The second component will be a Junior Course, located 15 feet off the ground and designed to provide activities for younger children.

The third is a Zip Line Tour and Freefall. The Zip Line Tour will go through Blue Ridge Mountain forests and meadows surrounding Tweetsie Railroad.

“High Gravity Adventure is honored and excited to partner with Tweetsie Railroad in bringing active family fun to the High Country,” says Ken Jacquot, President of High Gravity Adventure, in the announcement. “Our specialty is creating opportunities for people of all ages and abilities to experience the vertical world, and we hope visitors will include High Gravity Adventure when they visit the Boone/Blowing Rock area.”

High Gravity Adventure will have activities for children as young as four or five years old. No experience is required; with challenges of varying difficulty levels offered.

“The new High Gravity Adventure will be a great addition to the tourism product in the Boone area. It adds a new element to our diverse outdoor adventure opportunities, and it¹s sure to be popular with new and returning visitors,” says Wright Tilley, executive director of the Watauga County Tourism Development Authority (TDA), in the release. “The Southeast has seen an increase in these types of courses over the past few years, so it¹s exciting to have a new one under construction in our area.”

Challenge Towers Aerial Adventures, the parent company of High Gravity Adventure, has constructed aerial courses and zip lines across the United States and around the world. The Todd, North Carolina.-based company has constructed notable aerial adventure projects in India, Jamaica, St. Lucia, Ecuador and Mexico. Recently, the company partnered with UNICEF on The Jamaica Project, a philanthropic project supporting youth development in Southern Jamaica.

Tweetsie Railroad will open for its 59th season April 10. Tweetsie Railroad is located in the Blue Ridge Mountains on U.S. Highway 321 between Boone and Blowing Rock, North Carolina. For more information about Tweetsie Railroad¹s 2015 season, or to purchase Golden Rail Season Passes, visit Tweetsie.com or call 877-893-3874. Find Tweetsie Railroad on Facebook or follow them on Twitter @TweetsieRR.

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Gov. Rick Scott shakes up FDLE, forces longtime commissioner to resign

Gov. Rick Scott’s transition to a new term suddenly turned rocky Tuesday when he forced the resignation of the longtime leader of the Florida Department of Law Enforcement.

Gerald Bailey, commissioner for nearly a decade, was replaced on an interim basis without explanation by Rick Swearingen, director of the Capitol Police.

Bailey’s resignation followed a mid-morning visit to FDLE headquarters by Scott’s general counsel, Pete Antonacci, who did not respond to a request for comment.

The governor’s office issued a terse news release that led with Swearingen’s interim appointment. The release thanked Bailey for his service “and for all he has done to keep our state safe,” calling him a “terrific leader.”

Within hours, Bailey’s official biography had been scrubbed from FDLE’s website and replaced with: “Commissioner’s biography is currently being updated.”

Bailey’s associates in law enforcement were blindsided by the news, as was at least one Cabinet member, Agriculture Commissioner Adam Putnam.

“I appreciate Commissioner Bailey’s service to the state of Florida, and I look forward to meeting the governor’s interim selection,” Putnam said. “This position is vitally important to the safety of all Floridians and I will weigh my decision very carefully.”

Bailey, a respected professional with a 35-year career in law enforcement, had been FDLE commissioner since 2006 when Jeb Bush was governor. He started as a state trooper in North Carolina and had held a variety of posts at FDLE since 1987, from special agent to inspector general to chief of its crime laboratories.

Scott’s chief of staff, Melissa Sellers, declined to elaborate on why Bailey was forced out, and calls to FDLE were not returned.

Upheaval at FDLE is rare and the agency strives to be above politics, which is not always easy because of its mission.

Early in Scott’s term, FDLE investigated the destruction of emails in the governor’s team. FDLE agents also questioned former Lt. Gov. Jennifer Carroll about ties to a veterans’ charity before she was forced to resign in March 2013.

By law, the hiring of the FDLE commissioner is a joint decision by the governor and the three Cabinet members.

FDLE has about 1,700 full-time employees and an annual budget of $300 million. The agency tracks sex offenders, investigates public corruption, maintains a DNA database and provides round-the-clock security to the governor and his family.

At Bailey’s last public appearance at a Dec. 9 Cabinet meeting, Chief Financial Officer Jeff Atwater expressed concern about how long it takes for FDLE’s crime lab to complete DNA investigations. Bailey said one reason is that FDLE pays its crime analysts less money than county sheriffs and people are leaving after they complete a mandatory three-year employment period.

“We’re having tremendous turnover problems,” Bailey told the Cabinet.

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Babson Capital Management Provides Senior Debt To Support Kohlberg …








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CHARLOTTE, N.C., Dec. 16, 2014 /PRNewswire/ — Babson Capital Management, a leading global asset management firm with more than $206 billion in assets under management, today announced it provided a senior secured credit facility to support the acquisition of PPC Industries Inc. by affiliates of Kohlberg Company, L.L.C.

PPC Industries, based in Pleasant Prairie, Wis., is a leading provider of highly engineered consumable specialty plastics for mission-critical applications in niche segments of the medical/pharmaceutical, food and industrial markets.

“Babson places great value on our longtime association with Kohlberg Company, and we are grateful for the opportunity to partner with Kohlberg on the investment in PPC Industries,” said Ian Fowler, Managing Director and co-head of Babson’s U.S. Private Finance Group. “As an existing lender, we have been pleased with the company’s growth and performance and we look forward to continuing to support PPC Industries as it partners with Kohlberg Company.”

Babson was an existing lender to PPC Industries through a 2006 investment via its Mezzanine Private Equity Group.

About PPC Industries, Inc.

PPC Industries, Inc. is a manufacturer of specialty plastic solutions for medical/pharmaceutical, food processing, and niche industrial applications. PPC operates manufacturing facilities in the United States, Costa Rica, Malaysia and Ireland. For further information on PPC and its various products, please visit www.ppcind.com or www.kelpacmedical.com.

About Kohlberg Company

Kohlberg Company, L.L.C. (“Kohlberg”) is a leading U.S. private equity firm headquartered in Mount Kisco, New York. Since its inception in 1987, Kohlberg has completed 63 platform investments and more than 100 add-on acquisitions, with an aggregate transaction value of over $9 billion. Kohlberg has invested over $3 billion during its history and is currently investing its seventh private equity fund, Kohlberg Investors VII. For more information, visit www.kohlberg.com

About Babson Capital Management

Babson Capital Management LLC (Babson) is a leading global asset management firm with over $206 billion in assets under management as of September 30, 2014. Through proprietary research, analysis and a focus on investment fundamentals, the firm and its global affiliates develop products and strategies that leverage its broad expertise in global fixed income, structured products, middle market finance, commercial real estate, alternatives and equities.  A member of the MassMutual Financial Group, Babson maintains a strong global footprint with operations on four continents and clients in over 20 countries. Learn more at www.babsoncapital.com

Contact: 

Brian Whelan, Babson Capital Management, 704.805.7244, bwhelan@babsoncapital.com

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AP: Carolinas politicians get payouts from broker

CHARLOTTE, N.C. (AP) — Soon after taking office, North Carolina Gov. Pat McCrory and U.S. Rep. Mark Sanford of South Carolina accepted six-figure stock payouts from an online mortgage broker accused by regulators of deceiving its customers.

The two Republicans served as directors at Tree.com, the Charlotte-based corporate parent of the website LendingTree. As board members, they were entitled to large chunks of restricted company stock if they held their positions long enough. Both resigned after their election victories, which would have rendered their unvested stock worthless had the board not taken special action to provide them early payouts.

McCrory and Sanford deny they did anything improper by accepting the stock payouts, which were not fully described in their ethics statements. Their timing and total value are only being revealed now, as the result of an Associated Press investigation into the company’s financial records and interviews with Tree.com officials.

Early vesting of restricted shares for departing directors is not unheard of in the corporate world.

However, more than a dozen securities lawyers and ethics experts told the AP that such stock payouts are uncommon for elected officials, and raise significant concerns. These experts gave differing opinions about whether laws were broken.

But “there is no question (this) raises a host of red flags for prosecutors and regulators,” said Jacob Frenkel, who handled corruption cases as a federal prosecutor and served as senior counsel in the Securities and Exchange Commission’s Division of Enforcement.

In the months after receiving his $171,071 payout of stock from Tree.com, McCrory appointed the state’s banking director and a majority of the banking commissioners who regulate mortgage brokers.

McCrory spokesman Josh Ellis said there was nothing irregular about that.

“There’s absolutely no conflict and nothing improper about these appointments,” he said.

Some of Tree.com‘s payments to McCrory and Sanford weren’t publicly disclosed until May 2014, when the company filed its 2013 year-end proxy statement with the U.S. Securities and Exchange Commission. Other details — such as the fact that Sanford received his $108,539 in Tree.com stock after taking office in Congress — have never been made public until now.

McCrory declined requests for an interview. In a written statement, Ellis said the governor fully complied with state law and “continues to uphold high ethical standards.”

Sanford also declined to answer any specific questions about the Tree.com stock. He wrote in an email to the AP that the company went “the extra mile in their adherence to top-notch business practices, ethics and documentation.”

But the retroactive vesting of Sanford’s stock could violate a prohibition on members of Congress accepting gifts exceeding $350 from non-family members, said Washington University Law School professor Kathleen Clark, an expert on Congressional ethics rules.

McCrory joined the Tree.com board in January 2009, a year before ending his last term as Charlotte’s mayor. Like all board directors, he was awarded restricted company stock as a performance and retention bonus, which vested in annual installments — as long as he stayed on the board.

While no North Carolina law bars elected officials from serving on corporate boards while in office, they are prohibited from taking official actions that might benefit their personal holdings.

McCrory won election as governor in November 2012. Company records show that he filed his resignation as director the day before his Jan. 5 inauguration, but made it effective Jan. 31, 2013 — the day after the next board meeting, and 26 days after his swearing-in.

That Jan. 30, the board voted to accelerate the vesting of McCrory’s 10,063 restricted shares, valued on that date at $171,071, even though thousands of the shares were not due to vest for another 16 months.

McCrory also was paid $4,375 in directors’ fees for his board service in January 2013, the records show, although Ellis said the governor did not participate in the January board meeting.

And even after McCrory’s departure, Tree.com paid its directors a special $1 per share cash dividend on any unvested stock they held at the end of the prior year, giving the governor another $10,063 on April 12, 2013, according to the SEC records.

McCrory’s total take of $185,509 from Tree.com in 2013 far exceeded the $139,590 salary he earned as governor that year.

Tree.com founder and Chief Executive Officer Doug Lebda told AP that “he was worth it,” adding 10 times the value of what he was paid.

Frenkel, now in private practice, said it is “troubling” that McCrory delayed his resignation from Tree.com, because he had a duty as both a company director and an elected official to avoid any appearance of conflict of interest.

Despite his Tree.com payments, McCrory did not recuse himself from naming the state banking director in the weeks before receiving his special dividend, or from naming eight commissioners to the regulatory agency 18 days later. In addition to licensing mortgage brokers, the commission investigates complaints, which are kept secret under state law unless they result in discipline.

North Carolina’s regulators won’t comment on whether LendingTree faces any such complaints in its home state, but records show the company has had issues with regulators elsewhere.

The company paid $3 million to South Carolina in 2012 after regulators said it failed to tell customers it was being paid by the lenders it recommended as having the best mortgage rates.

Tree.com also told the SEC that it has been negotiating to settle “various alleged violations” of state and federal laws with Massachusetts in a case that may be joined by up to 34 other states.

Sanford joined the Tree.com board in April 2012 after finishing his term as South Carolina governor in a cloud of ethical questions, having been forced to pay $74,000 to settle 37 state ethics charges, including using taxpayer funds to pay for flights to Argentina to visit his mistress.

As director, he was issued 5,518 restricted shares that would have vested in two equal installments in June 2013 and June 2014. But Sanford returned to politics before then, winning a special election to Congress, which prohibits its members from being paid to serve on corporate boards.

Sanford resigned from Tree.com‘s board effective May 16, 2013, the day after he was sworn in. Then, on June 19 — a month after Sanford took office — the company’s board voted to retroactively vest his $108,539 in restricted shares, Tree.com spokeswoman Megan Grueling told the AP.

The retroactive payment was proper because Sanford’s fellow directors weren’t able to meet before his “unexpected” resignation, Grueling said. And because he was no longer a director at the time of the vote, she said the company wasn’t required to disclose the transaction to the SEC.

All told, Sanford cleared $239,159 in stock, director’s fees and special dividends in his 13 months with Tree.com, records show. Since then, Sanford has voted on financial regulations in Congress, where rank-and-file members are paid an annual salary of $174,000.

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The headlines on earlier versions of this story incorrectly stated that the politicians received payouts from a lender. They received payouts from a broker.

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Biesecker reported from Raleigh, North Carolina.

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Partners Group to acquire Dynacast, a leading global manufacturer of precision …








CHARLOTTE, N.C., Dec. 17, 2014 /PRNewswire/ — Partners Group, the global private markets investment manager, has signed an agreement to acquire a controlling stake in Dynacast International on behalf of its clients. The transaction has an overall enterprise value of USD 1.1 billion and is expected to close in February 2015.

Founded nearly 80 years ago, Dynacast International is a global manufacturer of small, highly complex metal components. The company uses proprietary precision die-casting and metal injection molding (MIM) technologies to produce customized, high-volume components with complex shapes and tight tolerances. Dynacast is headquartered in Charlotte, North Carolina, and has 23 manufacturing plants in 16 countries worldwide, which serve a diverse client base including blue-chip customers across the automotive, telecommunications, computing, consumer electronics, and healthcare industries.

Dynacast was acquired in 2011 by a consortium of investors including Izurium Capital Management, W Capital Partners, Laurel Crown Partners, Kenner Company, Babson Capital Management, Macquarie Capital and certain members of management. Since its acquisition in 2011, Dynacast has experienced considerable growth and has expanded its footprint and penetrated new markets with its broad range of product offerings while strengthening its product portfolio with its recent acquisition of Kinetics Climax Inc.

Partners Group is acquiring Dynacast from exiting financial investors and is joined in the acquisition by Kenner Company, an existing shareholder, and the company’s management team, which will both roll over significant equity stakes into the new transaction. Following the close of the acquisition, Partners Group and Kenner Company will work closely with Dynacast’s management team to support the company in the next phase of its global growth plans.

Simon Newman, Chief Executive Officer of Dynacast, states: “Dynacast has a long and rich history of continuously refining our proprietary manufacturing technologies, in-house tooling expertise and innovative design processes to manufacture highly complex metal components in a fast, repeatable and precise manner to provide greater value to our customers. With the investment led by Partners Group, we have the strategic support and capital backing to enter into the next phase of growth for our company.”

Joel Schwartz, Managing Director at Partners Group in New York, adds: “We are really looking forward to working with Simon and the rest of Dynacast’s management team in this next stage of the company’s development. Dynacast already has a truly differentiated position as a global supplier in the precision metal components marketplace and we see exciting potential for further expansion. We believe our global platform and deep network of industry relationships make us the ideal partner to back management’s vision for the business going forward, particularly through our assistance with acquisitions and with the deepening of the company’s integrated, worldwide approach.”

The transaction has fully committed financing from JPMorgan Chase Bank, N.A., Barclays and Macquarie Capital and is subject to regulatory approvals and customary closing conditions. J.P. Morgan Securities LLC, Barclays, Macquarie Capital, Goodwin Procter LLP and KPMG LLP are advising Partners Group on the transaction.

Morgan Stanley and Co. LLC served as exclusive financial advisor to Dynacast while Hunton Williams LLP and Davis Polk Wardwell LLP served as legal counsel to Dynacast with respect to the transaction.

About Dynacast International Inc.
Dynacast works with organizations all over the world, helping bring their ideas to life with the highest quality precision engineered metal components on the planet. Customers can come from virtually any industry – consumer electronics, automotive, healthcare, or any other where only the very best is good enough. And each benefits from our 70+ years’ of experience pioneering the techniques and technologies that have redefined the industry. It means that every customer receives insight and expertise that adds value at every stage of the design and manufacturing process. It’s why today, across multiple industries and multiple geographies, Dynacast is the name synonymous with precision metal components. Please visit
www.dynacast.com to learn more. 

About Partners Group
Partners Group is a global private markets investment management firm with over EUR 33 billion (over USD 40 billion) in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, Houston, New York, Sao Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Mumbai, Singapore, Shanghai, Seoul, Tokyo and Sydney. The firm employs over 700 people, is listed on the SIX Swiss Exchange (symbol: PGHN) with a market capitalization of over CHF 7 billion (over USD 7 billion) and a major ownership by its partners and employees.

About Izurium Capital
Established in 2009, Izurium Capital is a London-based independent investment firm, which seeks to generate superior, returns for investors through value oriented Private Equity and Special Situations investment strategies. Since inception, Izurium has invested in excess of $200 million in European and North American companies operating in the technology, industrial manufacturing and specialty lending sectors.

About W Capital Partners
W Capital is a leading provider of shareholder liquidity to private equity firms, venture capital firms, financial institutions, corporations, company founders and lenders for illiquid, minority equity positions in private companies. Having raised over $1.7 billion and completed over 80 transactions, W Capital is a leading source of exit and partial exit options for buyout, growth and venture investments. W Capital’s experience, reputation and resources make the firm an ideal choice for private equity shareholders who desire to sell or restructure their direct investment portfolios. W Capital is also an active investor within their portfolio companies, providing support and growth capital concurrent with a liquidity transaction and over the duration of the investment.

About Laurel Crown Partners
Laurel Crown Partners, LLC is the private equity arm of The Louis Berkman Company.  It specializes in middle market buyouts.  The firm typically invests in regional, national and global businesses that are headquartered in the United States.  Laurel Crown has a history of successful investments in a wide variety of industries.

About Kenner Company
Based in New York, Kenner Company, Inc. is a private equity firm founded in 1986 that specializes in acquiring middle-market industrial and manufacturing businesses. Having worked together for over 20 years, the firm’s principals have significant investing and operating experience, enabling them to provide strategic direction to generate long-term value. Kenner has been instrumental in assisting Dynacast management to accomplish its objectives.

About Babson Capital Management
Babson Capital is a global investment management organization with over 1,000 employees that manages $206+ billion with a goal to provide clients with advanced investment solutions and the highest level of service. With offices on four continents, Babson offers clients access to investment opportunities around the globe and across the investment universe – providing uniquely tailored investment strategies – and an open door to talented professionals. The firm’s investment strategies are grounded in a rigorous research process, consistent risk controls and an unwavering commitment to clients.

About Macquarie Capital
With over 1,139 staff members globally, Macquarie Capital provides advisory and capital raising services to corporate and government clients involved in public mergers and acquisitions, private treaty acquisitions and divestments, debt and equity fund raising and corporate restructuring. It also undertakes principal investing activities globally in support of its client activities.

Investor relations contact:
Adrian Murphy, Executive Vice President, CFO
Phone: +1 704.927.2790
Email: investorrelations@dynacast.com

Media relations contact:
Nina Snelling, Global Marketing Manager
Phone: +1 704.927.2790
Email: nsnelling@dynacast.com

www.dynacast.com

SOURCE Dynacast International Inc.

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