KPS Capital Partners buys Oldcastle BuildingEnvelope bonds for debt overhaul
Updated
Updated · Bloomberg · May 4
KPS Capital Partners buys Oldcastle BuildingEnvelope bonds for debt overhaul
7 articles · Updated · Bloomberg · May 4
The private equity firm bought portions of Oldcastle’s $585 million debt at about 50 cents on the dollar, according to people familiar with the matter.
The purchases are seen as an effort to strengthen KPS’s position ahead of a potentially contentious restructuring battle with a consortium of Oldcastle lenders.
By acquiring discounted bonds in its own portfolio company, KPS is seeking to preserve the value of its investment as the glass maker approaches a financial overhaul.
Is KPS's debt buyback a genuine rescue or a predatory move to seize full control of its struggling glass giant?
Does this crisis reveal a fatal flaw in the private equity playbook of loading companies with massive debt?