Caxton-Iseman Capital Acquires KCP Income Fund
|Areas||Banking and Finance Law, Corporate and Commercial, Private Equity, REITs and Income Securities, Tax|
Goodmans represented KCP Income Fund in connection with Caxton-Iseman Capital, Inc.’s acquisition of all the assets of KCP Income Fund (the “Fund”) for $804 million. Caxton-Iseman is a New York-based private equity firm and KCP Income Fund, parent of KIK Custom Products, is one of North America's largest custom manufacturers of consumer products in the laundry, household cleaners, personal care, over-the-counter medication and pharmaceutical categories.
Upon completion of the acquisition, the units of KCP were redeemed for $10 per unit in cash. KCP and its subsidiary, KIK Acquisition Company (KIK) redeemed KIK's 6.50 per cent Exchangeable Unsecured Subordinated Debentures, in accordance with amendments to the provisions of the Trust Indenture at a redemption price of 100 per cent of the principal amount thereof. This transaction resulted from a strategic process initiated by KCP's board of trustees to identify and consider strategic alternatives available to the Fund to enhance unitholder value. J.P. Morgan Securities Inc., Credit Suisse and UBS provided debt financing for the transaction.