KPS Capital’s HHI Group Completes Recap With BofA Merrill, Others
KPS Capital Partners, LP (KPS) announced that its portfolio company, HHI Group Holdings, LLC (HHI), completed its seventh successful recapitalization since its creation. The proceeds of the recapitalization – funded by a combination of a $50 million upsizing of the company’s term loan, cash on hand and the company’s asset-based revolving credit facility – were used to fund a $70 million cash distribution to stockholders.
Financing for the transaction was provided by a syndicate of banks and institutional investors with Bank of America Merrill Lynch and Goldman Sachs acting as lead arrangers on the upsizing of the company’s term loan.
Following the seventh recapitalization, HHI remains conservatively capitalized and has the continued support of KPS, its majority stockholder. KPS and minority stockholders, including MC Capital Inc., a subsidiary of Mitsubishi Corp., and HHI management, continue to own 100% of HHI’s outstanding common stock.
HHI has distributed over $418.8 million of cash to its stockholders since its creation in 2006.
Jenner & Block LLP served as legal counsel to HHI with respect to the transaction.
HHI Group Holdings, through its Jernberg Holdings, Impact Forge Group, HHI FormTech, Kyklos Bearing International and Cloyes Gear and Products subsidiaries, is an independent manufacturer of highly engineered symmetrical and asymmetrical forged parts for various power train and wheel-end applications, a manufacturer of wheel bearings, and one of the few manufacturers of engine timing drive systems for the North American automotive industry.
KPS Capital Partners, LP is the manager of the KPS Special Situations Funds, a family of private equity funds with over $2.8 billion of committed capital focused on constructive investing in restructurings, turnarounds and other special situations.