KPS Capital Partners has completed a second dividend recapitalization of its portfolio company, Waupaca Foundry. The proceeds of this recapitalization, funded by a $125 million upsizing of the company’s term loan, were used to fund a $125 million cash distribution to stockholders.
Financing for the recapitalization was provided by a syndicate of banks and institutional investors with GE Capital acting as Lead Arranger. KPS remains Waupaca’s majority shareholder.
KPS acquired ThyssenKrupp Waupaca, Inc., which was renamed Waupaca Foundry, Inc., from ThyssenKrupp Budd Company in June 2012. GE Capital was the administrative agent on $485 million in acquisition financing used by KPS to acquire Waupaca Foundry.
In February 2013, Waupaca completed its first recapitalization, the proceeds of which were used to fund a $200 million cash distribution to stockholders. Proceeds for the February 2013 dividend recapitalization were funded by a $200 million upsizing of a credit facility provided by GE Capital which served as the Administrative Agent. As a result of the two recapitalizations, Waupaca has now distributed $325 million of cash to its stockholders since its creation.
Waupaca Foundry is the largest iron foundry company in the world and produces gray and ductile iron castings using state-of-the-art technology. Waupaca supplies iron castings to the automotive, truck, agriculture, construction, hydraulics and commercial vehicle markets. The company operates six manufacturing facilities located in Wisconsin (4), Indiana, and Tennessee. Waupaca employs approximately 3,700 people and is headquartered in Waupaca, WI (www.waupacafoundry.com).
KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $6 billion of committed capital focused on investing in restructurings, turnarounds and other special situations. 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. The firm’s portfolio companies have aggregate annual revenues of approximately $6.8 billion, operate 85 manufacturing plants in 25 countries, and employ over 29,000 associates worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 6-18-13