Brentwood Completes K-Mac, Paper Source Dividend Recaps
Private equity firm Brentwood Associates announced it has completed dividend recapitalizations of two of its portfolio companies, K-Mac Holdings and Paper Source. The K-Mac dividend was financed through excess capacity under the company’s existing $252 million credit facility. Brentwood said Bank of America Merrill Lynch, Wells Fargo and SunTrust Robinson Humphrey were joint lead arrangers on the senior debt financing for K-Mac.
The Paper Source dividend was financed through a new $50 million credit facility, and provides a return that exceeds Brentwood’s original investment in the company. Brentwood said the financing for the Paper Source recapitalization was provided by Golub Capital.
Fort Smith, AK-based K-Mac is a quick-service restaurant franchisee founded in 1964 and is the largest Taco Bell franchisee in the U.S.
Chicago, IL-based Paper Source is a multi-channel retailer of a wide selection of unique paper products in distinctive colors and formats.