New York, NY (August 19, 2010) -- 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
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $21.8 billion of assets under management (as of June 30, 2024). For over three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies generate aggregate annual revenues of approximately $21.6 billion, operate 245 manufacturing facilities in 26 countries, and have approximately 64,000 employees, directly and through joint ventures worldwide (as of June 30, 2024, pro forma for the recent acquisitions of Sport Group and Innomotics which closed on July 8, 2024 and October 1, 2024, respectively). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
