Expera, a portfolio company of KPS, has completed a $270 million recapitalization.. Proceeds of the recap were used to pay a dividend to stockholders, refinance debt and support company growth. Expera is a maker of specialty paper products in North America.
NEW YORK, Sept. 2, 2014 /PRNewswire/ — KPS Capital Partners, LP (“KPS”) announced today that its portfolio company Expera Specialty Solutions, LLC (“Expera” or the “Company”) has completed a successful recapitalization. Expera raised $270 million of financing, including a $75 million cash flow revolving credit facility and a $195 million term loan. The proceeds of the recapitalization were used to refinance outstanding debt, to fund a $35 million cash distribution to stockholders and to support the Company’s continued growth.
Following the recapitalization, Expera remains conservatively capitalized with the continued support of its controlling shareholder, KPS, a private equity firm with more than $6.1 billion of assets under management. KPS and Expera management continue to own 100% of Expera’s common stock following the recapitalization.
Russ Wanke, Chief Executive Officer of Expera, said, “In our first year under KPS’ ownership, Expera’s performance exceeded expectations. Thanks to the dedication and commitment of Expera’s employees, we are now a fully integrated, independent and more profitable company focused on innovation, new product development and growth. This recapitalization validates the successful transformation of Expera, and we are pleased to return capital to our stockholders. Our objective is to continue to consolidate the North American specialty paper industry. Our conservative capital structure and the financial support of our stockholders provide us with the resources to support our customers and further expand the Expera platform, both organically and through acquisitions.”
Financing for the recapitalization was provided by a syndicate of banks with Bank of America Merrill Lynch and GE Capital Markets, Inc. acting as the Co-Lead Arrangers and Bookrunners on the $75 million cash flow revolving credit facility and the $195 million term loan.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Expera with respect to the recapitalization.
About Expera Specialty Solutions, LLC
Expera is the leading North American manufacturer of specialty paper products for use in the tape, pressure-sensitive release liner, industrial and food packaging segments. Expera’s manufacturing platform includes machines at four mills located in Rhinelander, WI, Mosinee, WI, Kaukauna, WI and De Pere, WI. For more information, visit www.experaspecialty.com.
About KPS Capital Partners, LP
KPS is the manager of the KPS Special Situations Funds, a family of investment funds with more than $6.1 billion of assets under management. KPS seeks to realize significant capital appreciation by making controlling equity investments in companies across a diverse range of manufacturing industries experiencing a period of transition or challenged by the need to effect immediate and significant change. KPS creates value for its investors by seeing value where others do not, buying right and making businesses better. The KPS investment strategy is based primarily upon partnering with world-class management teams to effect material and sustainable improvements in the operations of its businesses. Thereafter, KPS focuses on growing its businesses, both organically and through strategic acquisitions. KPS portfolio companies have aggregate annual revenues of approximately $8.1 billion, operate 109 manufacturing facilities in 26 countries, and employ more than 51,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.