KPS Capital’s Attends Healthcare Recaps

Attends Healthcare Inc., a portfolio company of KPS Capital Partners, has completed its second recap in the past 14 months, the firm announced Friday. The $133 million recap was funded by a combination of upsizing the company’s term loan, cash on hand and asset based revolving credit facility, KPS said in a written statement. The money was used to refinance outstanding debt and fund a $35 million distribution to stockholders.

PRESS RELEASE

KPS Capital Partners, LP (“KPS”) announced today that its portfolio company, Attends Healthcare, Inc. (“Attends” or the “Company”), completed its second successful recapitalization in the past fourteen months. The proceeds of the $133 million recapitalization – funded by a combination of upsizing the Company’s term loan, cash on hand and the Company’s asset based revolving credit facility – were used to refinance outstanding debt, to fund a $35 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 $2.9 billion of assets under management. KPS and Attends management continue to own 100% of Attends’ common stock following the recapitalization.

Attends completed a $98 million recapitalization on March 31, 2010. The 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. The combined proceeds of the two recapitalizations, as well as other financings and the Company’s strong cash flow, resulted in approximately $120 million in cash distributions to stockholders since the Company’s formation in 2007.

The asset-based revolving credit facility was provided by Wells Fargo Commercial Banking, and the term loan financing was provided by Regiment Capital Special Situations Fund V, LP and Wells Fargo Commercial Banking. Lincoln International acted as exclusive financial advisor to the Company and KPS and helped to negotiate and structure 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 $2.9 billion of assets under management 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.