KPS Capital Partners has recapitalized portfolio company Global Brass and Copper Inc. The addition of $465 million in new debt will refinance existing debt, provide a $102 million cash distribution to shareholders and be used for working capital.
KPS Capital Partners, LP (“KPS”) announced today that its portfolio company Global Brass and Copper, Inc. (“GBC”) has completed a successful recapitalization. GBC raised $465 million of new financing, including a $150 million committed asset-based revolving credit facility and a $315 million term loan. The proceeds of the recapitalization were used to refinance outstanding debt, to fund a $102 million cash distribution to stockholders and to fund the Company’s continued growth.
Following the recapitalization, GBC remains conservatively capitalized and has the continued support of KPS, its majority shareholder. KPS and GBC management continue to own 100% of GBC’s common stock.
Financing for the transaction was provided by a syndicate of banks and institutional investors with Wells Fargo Capital Finance, LLC and GE Capital Markets, Inc. acting as joint lead arrangers on the $150 million asset based revolving credit facility and Goldman Sachs Lending Partners LLC acted as Arranger and Sole Bookrunner on the $315 million term loan.
Paul, Weiss Rifkind, Wharton and Garrison LLP served as legal counsel to GBC with respect to the recapitalization.
About Global Brass and Copper, Inc.
Headquartered in East Alton, Illinois, Global Brass and Copper, Inc. (“GBC”) is the leading manufacturer and distributor of copper and copper-alloy sheet, strip, plate, foil, rod and fabricated components in the North America and one of the largest in the world. GBC employs over 2,000 employees, and operates manufacturing facilities in East Alton, Illinois, Montpelier and Bryan, Ohio; Waterbury, Connecticut; and Cuba, Missouri, and operates joint ventures in Japan and China. The company also owns A.J. Oster, the leading service center and distributor of brass and copper products in North America. GBC and its subsidiaries sell products under the Olin Metals, Olin Brass, and Chase Brass brand names. For more information, please visit www.gbcmetals.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