|
FOR IMMEDIATE RELEASE
|
Business
Inquiries:
KPS 212.338.5100
|
Media Relations:
Mark Semer/Andrea Calise 212.521.4800
|
KPS
CAPITAL PARTNERS PORTFOLIO COMPANY,
GLOBAL BRASS AND COPPER, INC., COMPLETES SECOND SUCCESSFUL
RECAPITALIZATION
New
York, NY
(June 1, 2012) -- KPS Capital Partners, LP ("KPS") announced today
that its portfolio company Global Brass and Copper, Inc. (“GBC”)
completed a successful recapitalization. GBC raised $575 million of
financing, including a $200 million committed
asset-based revolving credit facility and $375 million 9.5% senior secured
notes due June 2019, sold pursuant to Rule 144A/Regulation S. The
proceeds of the recapitalization were used to refinance existing
outstanding debt, to fund a $160 million cash distribution to
stockholders and for general corporate purposes. The transaction provides additional
financial flexibility to GBC to implement its growth strategy.
Following
the recapitalization, KPS and GBC management continue to own 100% of
GBC’s common stock.
Financing for the recapitalization was
provided by a syndicate of banks and institutional investors. Goldman, Sachs & Co. and Morgan
Stanley & Co. LLC acted as joint bookrunners
on the $375 million senior secured notes offering. Wells Fargo Capital Finance, LLC, part
of Wells Fargo & Company (“Wells Fargo”), and GE Capital Markets,
Inc. acted as joint lead arrangers, and Wells Fargo and Bank of America
Securities, LLC acted as joint bookrunners, on
the $200 million committed asset-based revolving credit facility.
Paul, Weiss Rifkind,
Wharton & Garrison LLP served as legal counsel to GBC with respect to
the recapitalization.
About
Global Brass and Copper, Inc.
Headquartered
in Schaumburg, Illinois, Global Brass and Copper, Inc. ("GBC")
is a leading value-added converter, fabricator, distributor and processor
of specialized copper and brass products in North America. GBC products
include a wide range of sheet, strip, foil, rod, tube and fabricated
metal component products that are sold under the Olin Brass, Chase Brass
and A.J. Oster brand names. GBC employs
approximately 1,900 people, and operates 11 manufacturing facilities and
distribution centers across the United States, Puerto Rico and Mexico, as
well as 80% owned joint venture in China, 50/50 joint venture in Japan
and sales offices in China and Singapore. For more information, please
visit www.gbcmetals.com
About KPS Capital Partners, LP
KPS Capital
Partners, LP is the manager of the KPS Special Situations Funds, a family
of private equity funds with over $2.8 billion of assets under management
focused on constructive investing in corporate carve-outs, restructurings
and other special situations. KPS has executed highly complex corporate carve-out
transactions on a global basis, and has acquired businesses from numerous
Global Fortune 500 companies. The KPS investment strategy targets
manufacturing and industrial companies with strong market positions that
are going through a period of transition or experiencing operating or
financial difficulties. For over two decades, the partners of KPS have
worked with the management teams and associates of its portfolio
companies to improve operating and financial performance by focusing on
cost reduction, efficiency, operational excellence and strategic growth
initiatives. KPS portfolio companies have aggregate annual revenues of
$6.1 billion, operate 89 manufacturing plants in
24 countries, and employ over 28,000 associates, directly and through
joint ventures worldwide. The KPS investment strategy and portfolio
companies are described in detail at the firm's website: www.kpsfund.com
|
