Wayzata Investment Partners has acquired a majority stake in Portola Packaging Inc., a Batavia, Ill.-based provider of packaging solutions. The deal helps bring Portola out of Chapter 11 bankruptcy, and includes a senior loan facility from Wells Fargo Foothill.
Portola Packaging Inc. (“Portola”) today announced that it has completed the process of de-leveraging its balance sheet. The re-structuring has significantly reduced Portola’s total outstanding indebtedness and associated interest expense. During the pre-packaged chapter 11 reorganization, Portola continued to operate without any disruption or effect on suppliers and customers while it eliminated $180MM of debt from its balance sheet. In connection with the re-structuring, Portola converted all of the 8.25% senior notes into equity. Portola has emerged from the re-structuring with strong financial sponsorship. Funds managed by Wayzata Investment Partners (“Wayzata”) are now Portola’s majority shareholder, and Wells Fargo Foothill, part of Wells Fargo & Company (NYSE:WFC), and its lending partners have provided a senior loan facility for the company.
Brian Bauerbach, Portola’s Chief Executive Officer, said “Portola is now one of the most financially sound suppliers in the market and is positioned to move forward successfully and bring the best products, quality, and service to our customers. I wish to thank all of our customers, suppliers, and employees for their patience and loyalty while we worked through this critical period.”