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KPS Capital recapitalizes Anchor Glass in $465m financing

Dividend recap generates $150 million dividend for New York private equity firm

New York's KPS Capital Partners LP has completed the recapitalisation of its portfolio company Anchor Glass Container and drawn a $150 million dividend, according to a statement.

Credit Suisse Securities and Barclays Bank arranged the $465 million debt package for the Florida-based glass products manufacturing company to fund the transaction.

“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,” said Jim Fredlake, chief executive of Anchor Glass, in a statement about the company's business in respect to the financing.

KPS acquired the company for an undisclosed sum in April 2014, with equity from its $3.5 billion Special Situations Fund IV.

The firm has $5.9 billion in assets under management and completed raising the $3.5 billion fund in 2013 in just three months, according to a statement. Investors in the fund include the Arkansas Teacher Retirement System, Florida State Board of Administration, Illinois State Board of Investment, Iowa Public Employees Retirement System, Los Angeles City Employees Retirement System and the State of Wisconsin Investment Board among others, according to PEI Research & Analytics.

KPS acquires majority stakes in troubled companies, including those that have filed for Chapter 11 bankruptcy protection, or divestitures.

In May, KPS agreed to sell WWRD Holdings to Fiskars Corporation for $437 million.

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