KPS Capital Partners’ portfolio company HHI Group has completed its second recapitalisation in 2010.
The proceeds of the recapitalisation – funded by a combination of a USD30m upsizing of the company’s term loan, cash on hand and the company’s asset-based revolving credit facility – were used to fund a USD50m cash distribution to stockholders.
Following the second recapitalisation, HHI remains conservatively capitalised and has the continued support of KPS, its majority stockholder. KPS and minority stockholders, including MC Capital, a subsidiary of Mitsubishi, and HHI management, continue to own 100 per cent of HHI’s common stock.
HHI completed a USD300m recapitalidation on 31 March 2010. The proceeds of the recapitalisation were used to refinance outstanding debt, to fund a USD150m cash distribution to stockholders and to fund the company’s continued growth.
Financing for the transaction was provided by a syndicate of banks and institutional investors with Bank of America Merrill Lynch acting as sole lead arranger on the upsizing of the company’s term loan.
HHI Group is a manufacturer of engineered symmetrical and asymmetrical forged parts for various power train and wheel-end applications, Generation III wheel bearings and engine timing systems for the North American automotive industry.
