Expera, a portfolio company of KPS Capital Partners LP, has completed a $335 million recapitalization. Proceeds of the recap were used to pay a dividend to stockholders, refinance debt and support company growth. Deutsche Bank Securities Inc and Barclays led the funding for the transaction. Wisconsin-based Expera is a maker of specialty paper products in North America.
NEW YORK, Nov. 3, 2016 /PRNewswire/ — KPS Capital Partners, LP (“KPS”) announced today that its portfolio company Expera Specialty Solutions, LLC (“Expera” or the “Company”) has completed its second successful recapitalization. Expera raised $335 million of financing, including a $50 million senior secured revolving credit facility and a $285 million senior secured term loan. The proceeds of the recapitalization were used to refinance outstanding debt, to fund an $85 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 KPS to pursue organic and strategic growth initiatives. KPS is a private equity firm with approximately $5.5 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, “Expera’s successful recapitalization validates the incredible transformation Expera has experienced under KPS’ ownership, and we are pleased to return capital to our stockholders. 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.”
In August 2014, Expera completed its first recapitalization, the proceeds of which were used to fund a $35 million cash distribution to stockholders. As a result of the two recapitalizations, Expera has distributed $120 million of cash to its stockholders since its creation.
Financing for the recapitalization was provided by a syndicate of banks with Deutsche Bank Securities Inc. and Barclays acting as the Joint Lead Arrangers and Joint Bookrunners on the $50 million senior secured revolving credit facility and the $285 million senior secured 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 a leading North American manufacturer of specialty paper products for the industrial & technical, food, and pressure-sensitive release liner segments. Headquartered in Wisconsin, Expera employs approximately 1,800 people across four manufacturing facilities located in Rhinelander, WI, Mosinee, WI, Kaukauna, WI, and De Pere, WI. Additional information regarding Expera, its manufacturing facilities and its product offerings can be found at www.experaspecialty.com.
About KPS Capital Partners, LP
KPS is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $5.5 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. The KPS Funds’ portfolio companies have aggregate annual revenues of approximately $4.5 billion, operate 93 manufacturing facilities in 23 countries, and employ approximately 40,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.