Norwest Equity Partners recently announced that its portfolio company Aurafin, LLC, the karat gold jewelry industry market leader, has completed a new $140 million bank financing. Led by Bank of America, Sovereign Bank, and ABN AMRO, this new facility extends through 2009 and provides the Company with the required capital to compete in today's highly competitive jewelry manufacturing market.

Jewelry industry veteran Michael H. Gusky founded Aurafin in 1982. After several years of growing the business on his own, Gusky ultimately partnered with private equity firm NEP in 1999, by selling 50% of the equity of Aurafin. Headquartered in Tamarac, Florida, the Company has since grown to become one of the largest suppliers of 10kt and 14kt gold and gemstone jewelry, with customers including all of the major retailers in the United States and more than 3,500 independent jewelry stores across North America.

In May 2006, Gusky announced his plans to retire from the Company while maintaining a significant ownership position. At the same time, David Meleski was promoted to Chief Executive Officer from his previous role as President. Under the terms of the new bank agreement, NEP, Gusky and Meleski have infused the Company with an additional $10 million of capital. Company management shared that this additional equity was needed as a response to the $200 per ounce rise in gold prices over the past year.

Steven Farsht, NEP Partner and Aurafin board member, said "On behalf of the partnership at NEP, we are extremely happy with the support the bank group has shown for Aurafin and its management team. Clearly, the recent spike in gold prices has made our business model more capital-intensive, and all of Aurafin's investment partners have stepped-up to meet the financial requirements necessary to support the Company and its growth."

Meleski also shared, "The new bank financing provides Aurafin with substantial working capital improvement and well-positions us for growth opportunities that are certain to come our way during the continued consolidation in the jewelry industry."