KPS Capital Partners has completed a recapitalization of its portfolio company Expera Specialty Solutions. Expera raised $270 million of financing, including a $75 million cash flow revolving credit facility and a $195 million term loan. The proceeds of the recapitalization were used to refinance outstanding debt, to fund a $35 million cash distribution to stockholders and to support the company’s continued growth.
Financing for the recapitalization was provided by a syndicate of banks with Bank of America Merrill Lynch and GE Capital Markets acting as the Co-Lead Arrangers and Bookrunners on the $75 million cash flow revolving credit facility and the $195 million term loan.
Expera is a manufacturer of specialty paper products for use in the tape, pressure-sensitive release liner, industrial and food packaging segments. Expera’s manufacturing platform includes machines at four mills located in Rhinelander, WI; Mosinee, WI; Kaukauna, WI; and De Pere, WI (www.experaspecialty.com).
“In our first year under KPS’ ownership, Expera’s performance exceeded expectations. Thanks to the dedication and commitment of Expera’s employees, we are now a fully integrated, independent and more profitable company focused on innovation, new product development and growth,” said Russ Wanke, Chief Executive Officer of Expera. “Our objective is to continue to consolidate the North American specialty paper industry. Our conservative capital structure and the financial support of our stockholders provide us with the resources to further expand the Expera platform, both organically and through acquisitions.”
Expera Specialty Solutions was formed in May 2013 as part of the acquisitions of Wausau Specialty Paper from Wausau Paper, and the specialty paper business of Packaging Dynamics Corporation (KPS Capital Partners Forms Expera Specialty Solutions – PEP Digest May 2013).
KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with $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 $8.1 billion, operate 109 manufacturing plants in 26 countries, and employ over 51,000 associates worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 9-2-14
