KPS Capital Partners Portfolio Company, North American Breweries, Inc., Completes Successful Recapitalization

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Nov 08, 2010, 09:00 ET

NEW YORK, Nov. 8, 2010 /PRNewswire/ -- KPS Capital Partners, LP ("KPS") announced today that its portfolio company North American Breweries, Inc. ("NAB") has completed a successful recapitalization. NAB raised $145 million of new financing, including a $25 million revolving credit facility and a $120 million term loan. The proceeds of the recapitalization were used to refinance outstanding debt, to fund a $78 million cash distribution to stockholders and to fund the Company's continued growth.

Following the recapitalization, NAB remains conservatively capitalized and has the continued support of KPS, its majority shareholder. KPS and NAB management continue to own 100% of NAB's common stock.

Financing for the transaction was provided by a syndicate of banks with RBS Citizens N.A. acting as sole lead arranger and joint book runner, along with JP Morgan Chase Bank N.A. acting as joint book runner.

Jenner & Block LLP served as legal counsel to NAB with respect to the recapitalization.

About North American Breweries, Inc.

Headquartered in Rochester, New York, North American Breweries, Inc. is a national platform for investments and growth in the beer and malt beverage industries. Formed in 2009, North American Breweries is one of the largest independently owned beer companies in the United States. NAB manufactures, imports, markets and sells its branded product portfolio through an independent network of wholesalers throughout the U.S. NAB's portfolio of brands includes: the Labatt brands; the Genesee brands; the Original Honey Brown Lager and Dundee Ales & Lagers; Seagram's Escapes; Magic Hat; Pyramid; and MacTarnahan's. NAB also performs contract brewing of beer and other alcoholic and non-alcoholic beverages on behalf of other companies. Additionally, NAB is the U.S. distributor of Imperial from Costa Rica. NAB operates four breweries across the United States, including its flagship brewery, the Genesee Brewery, in Rochester, NY, which is one of the largest and longest continually-operating breweries in the United States.

For more information about North American Breweries, please visit www.nabreweries.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.

SOURCE KPS Capital Partners, LP