KPS Capital Partners, LP ("KPS") announced today that its portfolio company Anchor Glass Container Corporation ("Anchor Glass" or the "Company") has completed a successful recapitalization. Anchor Glass raised $465 million of financing through a new term loan. The proceeds of the recapitalization were used to refinance outstanding debt, to fund a $150 million cash distribution to stockholders and to support the Company's continued growth.
Following the recapitalization, Anchor Glass remains conservatively capitalized with the continued support of its controlling shareholder, KPS, a private equity firm with approximately $5.9 billion of assets under management. KPS, co-investors and Anchor Glass management continue to own 100% of Anchor Glass' common stock following the recapitalization.
Jim Fredlake, Chief Executive Officer of Anchor Glass, said, "In our first year under KPS' ownership, Anchor Glass' performance has exceeded our expectations. Anchor Glass is now a fully independent company focused on manufacturing excellence and providing best-in-class product quality, product innovation and the highest levels of service and support to our customers. This recapitalization validates the successful transformation Anchor Glass has made under KPS' ownership, and we are pleased to return capital to our stockholders. Our conservative capital structure and the financial support of our stockholders provide us with the resources to support our customers and further expand Anchor Glass, both organically and through acquisitions. We thank our customers, suppliers and employees for their contributions to our remarkable success."
Financing for the recapitalization was provided by a syndicate of banks with Credit Suisse Securities (USA) LLC and Barclays Bank PLC acting as the Lead Arrangers and Joint Bookrunners on the term loan.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Anchor Glass with respect to the recapitalization.
About Anchor Glass Container Corporation
Anchor Glass is a leading North American manufacturer of premium glass packaging products. Anchor Glass has long-standing relationships with blue chip companies across the beer, liquor, food, beverage, ready-to-drink and consumer end-markets. The Company employs approximately 2,000 people and operates six manufacturing facilities located in Florida, Georgia, Indiana, Minnesota, New York and Oklahoma, an engineering and spare parts facility in Illinois and a mold manufacturing facility in Ohio. For more information, please visit www.anchorglass.com.
About KPS Capital Partners, LP
KPS is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $5.9 billion of assets under management. KPS seeks to realize significant capital appreciation by making controlling equity investments in companies across a diverse range of manufacturing industries experiencing a period of transition or challenged by the need to effect immediate and significant change. The KPS investment strategy is based primarily upon partnering with world-class management teams to effect material and sustainable improvements in the operations of its businesses. Thereafter, KPS focuses on growing its businesses, both organically and through strategic acquisitions. KPS portfolio companies have aggregate annual revenues of approximately $6.3 billion, operate 103 manufacturing facilities in 26 countries, and employ more than 46,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com