New York, NY (September 30, 2014) -- KPS Capital Partners, LP (“KPS”) announced today that its portfolio company Motor Coach Industries International, Inc. (“MCI” or the “Company”) has completed a successful recapitalization. MCI raised a new $130 million term loan in conjunction with the amendment and extension of the Company’s existing $115 million asset-based revolving credit facility. The proceeds of the recapitalization were used to refinance outstanding debt, to fund a $120 million cash distribution to investors and to support the Company’s continued growth.
Following the recapitalization, MCI remains conservatively capitalized with the continued support of its controlling shareholder, KPS, a private equity firm with more than $6.1 billion of assets under management. KPS, Daimler North America Corp. and MCI management continue to own 100% of the MCI organization following the recapitalization.
Rick Heller, Chief Executive Officer of MCI, said, “This successful recapitalization validates the incredible transformation MCI has made under KPS ownership and we are pleased to return capital to our stockholders. MCI is the clear market leader with demonstrated best-in-class quality, unmatched reliability, robust customer service and support, and the lowest total cost of ownership. Our conservative capital structure and the financial support of our stockholders provide us with the resources to support our customers and important growth initiatives. We thank our customers, suppliers and employees for their contributions to our remarkable success.”
The asset-based revolving credit facility was provided by a syndicate of banks with Wells Fargo Capital Finance acting as Arranger, and the term loan financing was provided by TCW Direct Lending Group. Houlihan Lokey Financial Advisors, Inc. acted as exclusive financial advisor to the Company and privately placed the financing.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to MCI with respect to the recapitalization.
About Motor Coach Industries International, Inc.
Motor Coach Industries International (“MCI”) is the leading manufacturer of intercity coaches in the U.S. and Canada. MCI builds expertly engineered, best-selling models for the tour, charter, line-haul, commuter and transit markets. MCI also offers 24-hour technical support, industry-leading technician training and the most extensive aftermarket parts and repair service. Headquartered in Des Plaines, Illinois, MCI operates manufacturing facilities in Winnipeg, Manitoba and Pembina, North Dakota as well as seven service centers in North America. MCI employs over 1,500 associates across North America. For more information, visit www.mcicoach.com.
About KPS Capital Partners
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $21.4 billion of assets under management (as of December 31, 2023). For over three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies generate aggregate annual revenues of approximately $20.3 billion, operate 222 manufacturing facilities in 26 countries, and have approximately 48,000 employees, directly and through joint ventures worldwide (as of December 31, 2023). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
