Daily News: June 4, 2012

KPS Portfolio Company, Global Brass and Copper, Closes Second Recap

KPS Capital Partners, LP (KPS) announced that its portfolio company Global Brass and Copper, Inc. (GBC) completed a successful recapitalization. GBC 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, sold pursuant to Rule 144A/Regulation S.

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. The transaction provides additional financial flexibility to GBC to implement its growth strategy.

Following the recapitalization, KPS and GBC management continue to own 100% of GBC’s common stock.

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.

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

Headquartered in Schaumburg, IL, Global Brass and Copper, Inc. is a value-added converter, fabricator, distributor and processor of specialized copper and brass products in North America.

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 assets under management focused on constructive investing in corporate carve-outs, restructurings and other special situations.