KPS Capital Partners Completes Second Dividend Recap of Global Brass and Copper

KPS Capital Partners Completes Second Dividend Recap of Global Brass and Copper

KPS Capital Partners has completed a recapitalization of its portfolio company Global Brass and Copper. 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. Following the recapitalization, KPS and GBC management continue to own 100% of GBC’s common stock.

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

Global Brass and Copper is a manufacturer and distributor of copper and copper-alloy sheet, strip, plate, foil, rod and fabricated components. GBC has over 1,900 employees and operates 11 manufacturing facilities and distribution centers across the United States, Puerto Rico and Mexico, as well as a 80% owned joint venture in China, a 50/50 joint venture in Japan and sales offices in China and Singapore. The company is headquartered in Schaumburg, IL (

KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with over $2.9 billion of committed capital focused on 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. The firm is located in New York, NY (

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

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