KPS Capital Partners‘ portfolio company Motor Coach Industries International has completed a recapitalization. MCI raised a new $130 million term loan in conjunction with the amendment and extension of the company’s existing $115 million asset-based revolving credit facility.
KPS Capital Partners, LP (“KPS”) announced today that its portfolio company Motor Coach Industries International, Inc. (“MCI” or the “Company”) has completed a successful recapitalization. MCI raised a new $130 million term loan in conjunction with the amendment and extension of the Company’s existing $115 million asset-based revolving credit facility. The proceeds of the recapitalization were used to refinance outstanding debt, to fund a $120 million cash distribution to investors and to support the Company’s continued growth.
Following the recapitalization, MCI 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, Daimler North America Corp. and MCI management continue to own 100% of the MCI organization following the recapitalization.
Rick Heller, Chief Executive Officer of MCI, said, “This successful recapitalization validates the incredible transformation MCI has made under KPS ownership and we are pleased to return capital to our stockholders. MCI is the clear market leader with demonstrated best-in-class quality, unmatched reliability, robust customer service and support, and the lowest total cost of ownership. Our conservative capital structure and the financial support of our stockholders provide us with the resources to support our customers and important growth initiatives. We thank our customers, suppliers and employees for their contributions to our remarkable success.”
The asset-based revolving credit facility was provided by a syndicate of banks with Wells Fargo Capital Finance acting as Arranger, and the term loan financing was provided by TCW Direct Lending Group. Houlihan Lokey Financial Advisors, Inc. acted as exclusive financial advisor to the Company and privately placed the financing.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to MCI with respect to the recapitalization.
About Motor Coach Industries International, Inc.
Motor Coach Industries International (“MCI”) is the leading manufacturer of intercity coaches in the U.S. and Canada. MCI builds expertly engineered, best-selling models for the tour, charter, line-haul, commuter and transit markets. MCI also offers 24-hour technical support, industry-leading technician training and the most extensive aftermarket parts and repair service. Headquartered in Des Plaines, Illinois, MCI operates manufacturing facilities in Winnipeg, Manitoba and Pembina, North Dakota as well as seven service centers in North America. MCI employs over 1,500 associates across North America. For more information, visit www.mcicoach.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.
SOURCE KPS Capital Partners, LP