Waupaca Completes Second Recap, to Pay out $125 Mln to Shareholders

KPS Capital Partners, LP said today that its portfolio company, Waupaca Foundry, has completed a second recapitalization. Proceeds of the recap, a $125 million upsizing of the company’s term loan, were used to fund a $125 million cash distribution to stockholders. GE Capital Markets acted as lead arranger for the loan. In February, Waupaca completed its first recap and paid out a $200 million cash distribution to shareholders.  Waupaca, Wis.-based Waupaca Foundry is a producer of gray and ductile iron castings.


New York, NY (June 17, 2013) — KPS Capital Partners, LP (“KPS”) announced today that its portfolio company, Waupaca Foundry, Inc. (“Waupaca” or the “Company”), completed its second successful recapitalization. The proceeds of the recapitalization, funded by a $125 million upsizing of the Company’s term loan, were used to fund a $125 million cash distribution to stockholders.
Following the recapitalization, Waupaca remains conservatively capitalized and has the continued support of KPS, its majority shareholder, to pursue continuous improvement and growth initiatives.
KPS acquired ThyssenKrupp Waupaca, Inc., which was renamed Waupaca Foundry, Inc., from ThyssenKrupp Budd Company, through a newly formed, wholly owned affiliate, in June 2012.
In February 2013, Waupaca completed its first recapitalization, the proceeds of which were used to fund a $200 million cash distribution to stockholders. As a result of the two recapitalizations, Waupaca has distributed $325 million of cash to its stockholders since its creation.
Financing for the transaction was provided by a syndicate of banks and institutional investors with GE Capital Markets, Inc. acting as Lead Arranger.
About Waupaca Foundry, Inc.
Waupaca, the largest iron foundry company in the world, produces gray and ductile iron castings using state-of-the-art technology. Waupaca is North America’s leading supplier of iron castings to the automotive, truck, agriculture, construction, hydraulics and commercial vehicle markets. Headquartered in Waupaca, Wisconsin, the Company operates six manufacturing facilities, located in Waupaca, Wisconsin (3), Marinette, Wisconsin, Tell City, Indiana, and Etowah, Tennessee. Waupaca employs approximately 3,700 associates. For more information about Waupaca, please visit www.waupacafoundry.com
About KPS Capital Partners, LP
KPS is the manager of the KPS Special Situations Funds, a family of investment funds with over $6.0 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. The KPS investment strategy is based primarily upon partnering with top management teams and improving the operations of businesses. Thereafter, upon achieving stability and profitability, KPS focuses on growing its businesses, both organically and through strategic acquisitions. KPS portfolio companies have aggregate annual revenues of over $6.8 billion, operate 85 manufacturing facilities in 25 countries, and employ approximately 29,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.