KPS Capital Partners Portfolio Company, Global Brass and Copper, Inc., Completes Second Successful Recapitalization

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Jun 01, 2012, 11:54 ET

NEW YORK, June 1, 2012 /PRNewswire/ -- KPS Capital Partners, LP ("KPS") announced today that its portfolio company Global Brass and Copper, Inc. ("GBC") completed a successful recapitalization. GBC raised $575 million of financing, including a $200 million committed asset-based revolving credit facility and $375 million 9.5% senior secured notes due June 2019, sold pursuant to Rule 144A/Regulation S. The proceeds of the recapitalization were used to refinance existing outstanding debt, to fund a $160 million cash distribution to stockholders and for general corporate purposes. The transaction provides additional financial flexibility to GBC to implement its growth strategy.

Following the recapitalization, KPS and GBC management continue to own 100% of GBC's common stock.

Financing for the recapitalization was provided by a syndicate of banks and institutional investors. Goldman, Sachs & Co. and Morgan Stanley & Co. LLC acted as joint bookrunners on the $375 million senior secured notes offering. Wells Fargo Capital Finance, LLC, part of Wells Fargo & Company ("Wells Fargo"), and GE Capital Markets, Inc. acted as joint lead arrangers, and Wells Fargo and Bank of America Securities, LLC acted as joint bookrunners, on the $200 million committed asset-based revolving credit facility.

Paul, Weiss Rifkind, Wharton & Garrison LLP served as legal counsel to GBC with respect to the recapitalization.

About Global Brass and Copper, Inc.

Headquartered in Schaumburg, Illinois, Global Brass and Copper, Inc. ("GBC") is a leading value-added converter, fabricator, distributor and processor of specialized copper and brass products in North America. GBC products include a wide range of sheet, strip, foil, rod, tube and fabricated metal component products that are sold under the Olin Brass, Chase Brass and A.J. Oster brand names. GBC employs approximately 1,900 people, and operates 11 manufacturing facilities and distribution centers across the United States, Puerto Rico and Mexico, as well as 80% owned joint venture in China, 50/50 joint venture in Japan and sales offices in China and Singapore. 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 $2.8 billion of assets under management focused on constructive investing in corporate carve-outs, restructurings and other special situations. KPS has executed highly complex corporate carve-out transactions on a global basis, and has acquired businesses from numerous Global Fortune 500 companies. The KPS investment strategy targets manufacturing and industrial companies with strong market positions that are going through a period of transition or experiencing operating or financial difficulties. For over two decades, the partners of KPS have worked with the management teams and associates of its portfolio companies to improve operating and financial performance by focusing on cost reduction, efficiency, operational excellence and strategic growth initiatives. KPS portfolio companies have aggregate annual revenues of $6.1 billion, operate 89 manufacturing plants in 24 countries, and employ over 28,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at the firm's website: www.kpsfund.com

SOURCE KPS Capital Partners, LP