KPS Capital Partners LP said May 11 that it portfolio company Anchor Glass Container Corp completed a second recapitalization that produced a $148 million cash distribution to its stockholders. The first recap, in July 2015, produced a $150 million cash distribution to Anchor Glass stockholders. Anchor Glass makes glass packaging products. Credit Suisse provided financing while Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Anchor Glass with respect to the recapitalization.
NEW YORK, May 11, 2016 /PRNewswire/ — KPS Capital Partners, LP (“KPS”) announced today that its portfolio company Anchor Glass Container Corporation (“Anchor Glass” or the “Company”) has completed its second successful recapitalization. Funded by a $140 million upsizing of the Company’s term loan and cash on the balance sheet, the proceeds of the recapitalization, were used to fund a $148 million cash distribution to stockholders and to support the Company’s continued growth.
Following the recapitalization, Anchor Glass remains conservatively capitalized with the continued support of KPS to pursue organic and strategic growth initiatives. KPS is a private equity firm with approximately $5.4 billion of assets under management.
KPS acquired Anchor Glass, through a newly formed affiliate, from Ardagh Group S.A. in June 2014.
In July 2015, Anchor Glass completed its first recapitalization, the proceeds of which were used to fund a $150 million cash distribution to stockholders. As a result of the two recapitalizations, Anchor Glass has distributed $298 million of cash to its stockholders since its creation.
Financing for the recapitalization was provided by a syndicate of banks with Credit Suisse Securities (USA) LLC acting as the Lead Arranger and Lead Bookrunner on the term loan.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Anchor Glass with respect to the recapitalization.
About Anchor Glass Container Corporation
Anchor Glass is a leading North American manufacturer of premium glass packaging products. Anchor Glass has long-standing relationships with blue chip companies across the beer, liquor, food, beverage, ready-to-drink and consumer end-markets. The Company employs approximately 2,000 people and operates six manufacturing facilities located in Florida, Georgia, Indiana,Minnesota, New York and Oklahoma, an engineering and spare parts facility in Illinois and a mold manufacturing facility in Ohio. For more information, please visit www.anchorglass.com.
About KPS Capital Partners, LP
KPS is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $5.4 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. 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 $5.1 billion, operate 93 manufacturing facilities in 23 countries, and employ approximately 41,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com