Attends Healthcare Inc., a maker of adult incontinence products, has raised $98 million in new financing for a recapitalization. The deal includes a $20 million asset-based revolving credit facility from Wells Fargo Capital Finance and $78 million in term loans from Regiment Capital. Proceeds will be used to refinance existing debt and to fund a $60 million distribution to shareholders like KPS Capital Partners.
KPS Capital Partners, LP (“KPS”) announced today that its portfolio company Attends Healthcare, Inc. (“Attends”) has completed a successful recapitalization. Attends raised $98 million of new financing, including a $20 million asset-based revolving credit facility and $78 million in term loans. Proceeds of the recapitalization were used to refinance outstanding debt, to fund a $60 million cash distribution to stockholders and to fund the Company’s continued growth.
Following the recapitalization, Attends remains conservatively capitalized with the continued support of KPS, its majority shareholder, a private equity firm with over $2.6 billion of committed capital. KPS and Attends management continue to own 100% of Attends’ common stock following the recapitalization.
The asset-based revolving credit facility was provided by Wells Fargo Capital Finance, and the term loan financing was provided by Regiment Capital Special Situations Fund IV, L.P. Lincoln International acted as exclusive financial advisor to the Company and privately placed the financing.
K&L Gates LLP served as legal counsel to Attends with respect to the recapitalization.
About Attends Healthcare, Inc.
Attends Healthcare, Inc. is a leading manufacturer and distributor of a complete line of adult incontinence products for the North American marketplace that are sold primarily under the Attends® brand name. Attends Healthcare primarily serves the non-retail sectors with a focus on the acute care, long-term care, and rapidly growing home healthcare sectors. With over 300 employees, Attends is headquartered in Greenville, NC. For more information please visit www.attends.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.