KPS Capital Partners has recapitalized its portfolio company Anchor Glass Container through a new $465 million term loan. The proceeds were used to refinance outstanding debt and fund a $150 million cash distribution to stockholders.
Anchor Glass, acquired by KPS in April 2014, is a manufacturer of glass packaging products for the beer, liquor, food, beverage, ready-to-drink and consumer end-markets. Anchor Glass has six manufacturing facilities located in Florida, Georgia, Indiana, Minnesota, New York and Oklahoma, in addition to an engineering and spare parts facility in Illinois and a glass mold manufacturing facility in Ohio. The company is headquartered in Tampa and employs approximately 2,000 people (www.anchorglass.com).
“In our first year under KPS’ ownership, Anchor Glass’ performance has exceeded our expectations. This recapitalization validates the transformation we have made under KPS’ ownership and we are pleased to return capital to our stockholders,” said CEO Jim Fredlake.
The term loan used for the recapitalization was provided by a syndicate of banks with Credit Suisse Securities and Barclays Bank acting as the Lead Arrangers and Joint Bookrunners.
According to KPS, after the recapitalization Anchor Glass remains conservatively capitalized and the company continues to pursue organic growth as well as add-on acquisitions.
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 that invests in restructurings, turnarounds and other special situations. KPS targets manufacturing and industrial companies 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 billion, operate 103 manufacturing plants in 26 countries, and employ over 46,000 associates worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 7-6-15