NEW YORK--(BUSINESS WIRE)--
Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, "KKR")
today announced the signing of a definitive agreement under which
investment funds and accounts managed by KKR Asset Management LLC
("KAM") will make an investment in Australian recycling group, CMA
Corporation Ltd ("CMA" or the "Company").
CMA has been in voluntary suspension since February 2010 and the Company
has been undertaking a capital structure review. CMA and KAM have been
in discussions since December. KAM, on behalf of its funds and accounts,
made its first investment in the company in March 2011 when through a
secondary purchase, it became the largest holder of the company's
Syndicated Facility Agreement. This new investment is part of a
restructuring proposal announced by CMA and is subject to approval by
CMA's shareholders. If approved, the restructuring would position CMA
for renewed growth and enable the Company to recommence trading on the
Australian Stock Exchange (ASX). Further details of the proposal can be
found in CMA's announcement released to the ASX today.
"We see great potential in CMA and are excited by the prospect of
assisting in enhancing the Company's capital structure. Working with
management, we intend to grow the business over the long term. The
recapitalisation will allow CMA to move forward with greater financial
certainty, improve the recycling operations of the company and provide
greater security for the company's employees," Jamie Weinstein, Co-head
of KKR's Special Situations group, said.
CMA provides products and services to customers across Australia, Asia,
New Zealand and North America and employs more than 450 people. The
Company's major activities are the processing and recycling of
predominantly secondary ferrous and non-ferrous metal products. CMA
employs a variety of advanced high-end recycling technologies to add
value to its end customers.
The restructuring, if approved by shareholders, will see KAM on behalf
of its funds and accounts, provide support to CMA in the form of an
equity commitment, a commitment of capital to newly issued subordinated
debt and through improved access to new credit facilities.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with US$61.0 billion in assets under
management as of 31 March 2011. With 14 offices around the world, KKR
manages assets through a variety of investment funds and accounts
covering multiple asset classes. KKR seeks to create value by bringing
operational expertise to its portfolio companies and through active
oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with investors through
its client relationships and capital markets platforms. KKR is publicly
traded on the New York Stock Exchange (NYSE: KKR). For additional
information, please visit KKR's website at www.kkr.com.
Launched by KKR in 2004, KAM invests on behalf of its managed funds,
clients and accounts across the corporate credit spectrum, including
secured credit, bank loans and high yield securities as well as in
equities and alternative assets such as mezzanine financing, distressed
investing and structured finance. With more than 100 employees,
including 45 investment professionals, KAM's investment teams are
closely aligned with KKR's wealth of private equity investment and
industry resources. As of March 31, 2011, KAM had US$14.8 billion in
assets under management, of which US$7.8 billion is fee-paying.
Ian Smith, +61 418
Source: Kohlberg Kravis Roberts & Co. L.P.
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