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FOR
IMMEDIATE RELEASE
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Business
Inquiries:
KPS 212.338.5100
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KPS CAPITAL PARTNERS PORTFOLIO
COMPANY,
GLOBAL BRASS AND COPPER, INC., COMPLETES
SUCCESSFUL RECAPITALIZATION
New York, NY (August 19, 2010) -- KPS
Capital Partners, LP ("KPS") announced today that its portfolio
company Global Brass and Copper, Inc. (“GBC”) has completed a successful
recapitalization. GBC raised $465 million of new financing, including a
$150 million committed asset-based revolving credit facility and a $315
million term loan. The proceeds of the recapitalization were used to
refinance outstanding debt, to fund a $102 million cash distribution to
stockholders and to fund the Company’s continued growth.
Following
the recapitalization, GBC remains conservatively capitalized and has the
continued support of KPS, its majority shareholder. KPS and GBC management continue to own
100% of GBC’s common stock.
Financing for the transaction was
provided by a syndicate of banks and institutional investors with Wells
Fargo Capital Finance, LLC and GE Capital Markets, Inc. acting as joint
lead arrangers on the $150 million asset based revolving credit facility
and Goldman Sachs Lending Partners LLC acted as Arranger and Sole Bookrunner
on the $315 million term loan.
Paul, Weiss Rifkind, Wharton and
Garrison LLP served as legal counsel to GBC with respect to the
recapitalization.
About
Global Brass and Copper, Inc.
Headquartered in East Alton,
Illinois, Global Brass and Copper, Inc.
("GBC") is the leading manufacturer and distributor of copper
and copper-alloy sheet, strip, plate, foil, rod and fabricated components
in the North America and one of the
largest in the world. GBC employs over 2,000 employees, and operates
manufacturing facilities in East Alton, Illinois, Montpelier and Bryan,
Ohio; Waterbury, Connecticut; and Cuba, Missouri, and operates joint
ventures in Japan and China. The company also owns A.J. Oster, the
leading service center and distributor of brass and copper products in
North America. GBC and its subsidiaries sell products under the Olin
Metals, Olin Brass, and Chase Brass brand names. 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 $2.6 billion of committed capital focused on constructive
investing in restructurings, turnarounds and other special situations.
KPS has created new companies to purchase operating assets out of
bankruptcy; established stand-alone entities to operate divested assets;
and recapitalized highly leveraged public and private companies. The KPS
investment strategy targets companies with strong franchises that are
experiencing operating and financial problems. KPS invests its capital
concurrently with a turnaround plan predicated on cost reduction, capital
investment and capital availability. Typically, the KPS turnaround plan
is accompanied by a financial restructuring of the company's liabilities.
The KPS investment strategy and portfolio companies are described in
detail at the firm's website: www.kpsfund.com
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