Patriot Capital Funding Invests $9.0 Million in the Acquisition of Eight O'Clock Coffee

January 4, 2007
Patriot Capital Funding, Inc. (NasdaqGS: PCAP), a specialty finance company providing flexible financing solutions to small- and mid-sized companies primarily in transactions initiated by private equity sponsors, today announced that in December 2006, it closed a $9.0 million participation in a syndicated second lien term loan financing used to fund the purchase of Eight O'Clock Coffee Company by Tata Coffee Limited. Tata Coffee Limited acquired Eight O'Clock Coffee, a Montvale, N.J.-based coffee producer, marketer and distributor, from Gryphon Investors. Eight O'Clock Coffee is America's best selling whole bean coffee with more than 100 years of brand history, and is the third-largest national brand based on volume.

In December 2005 Patriot Capital Funding invested $6.5 million in the recapitalization of Eight O'Clock Coffee, supporting an investment at the time by Gryphon Investors, which acquired a majority stake from The Great Atlantic & Pacific Tea Co. That investment was repaid in August 2006.

About Patriot Capital Funding, Inc.

Patriot Capital Funding, Inc. ( is a specialty finance company providing customized financing solutions to private equity sponsors focused on making investments in small- and mid-sized companies. Patriot Capital Funding typically invests in companies with annual revenues generally ranging from $10 million to $100 million that operate in diverse industry sectors. Investments usually take the form of senior secured loans, junior secured loans, and/or subordinated debt investments - which may contain equity or equity-related instruments. Patriot Capital Funding also offers "one-stop" financing, which typically includes a revolving credit line, one or more senior term loans and a subordinated debt investment. Patriot Capital Funding also makes equity co-investments of up to $2.0 million.

Forward-Looking Statements

This press release may contain certain forward-looking statements, including statements with regard to the future performance of Patriot Capital Funding. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in Patriot Capital Funding's Form 10-K for the year ended December 31, 2005, and other filings with the Securities and Exchange Commission. Patriot Capital Funding undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.