RIVERSIDE, Calif.--(BUSINESS WIRE)--K&N Engineering, Inc. (“K&N” or the “Company”), announced today that it has closed the previously announced recapitalization transaction that, among other things, injects $60 million of cash into the business and provides the Company with the flexibility and capital to execute its long-term strategy: to continue investing in the industry-leading automotive, industrial, and residential HVAC filtration technology that it provides to its customers worldwide.
On January 3, 2023, K&N announced that it entered into a Restructuring Support Agreement (“RSA”) with 100% of its lenders. As a result of consummating the recapitalization, a group of institutional investors, through their managed funds, have become majority owners of the Company.
“We see significant opportunity ahead for K&N and are pleased to support the Company in strengthening its financial position,” said a representative from Arbour Lane Capital Management, L.P. “We look forward to working closely with the K&N team to maintain its position as an industry leader in automotive, industrial, and residential HVAC filtration technology and are thrilled to be a part of the Company’s next chapter of growth and innovation.”
“We are excited to partner with the new equity owners and capital providers,” said Randy Bays, the Interim Chief Executive Officer. “K&N is dedicated to serving its wide range of customers across the world and working collaboratively with its suppliers and vendors. This new partnership is evidence of the Company’s exciting prospects and positions the Company for sustainable, profitable growth.”
K&N was represented by Davis Polk & Wardwell LLP as legal counsel, Evercore as financial advisor and Alvarez & Marsal as restructuring advisor. An ad hoc group of first lien lenders, who constitute certain of the new capital providers and new equity owners, was represented by Ropes & Gray LLP as legal counsel and Ankura Consulting Group as financial advisor. The revolving first lien lenders were represented by Crowell & Moring LLP as legal counsel. An ad hoc group of second lien lenders was represented by O’Melveny & Myers LLP as legal counsel and Piper Sandler & Co. as financial advisor.
Disclaimer
This press release does not constitute an offer to sell or buy, nor the solicitation of an offer to sell or buy, any securities.
About K&N
Since 1969, K&N® has been an industry-leader in filtration technology—offering products to increase performance, protection, and longevity in thousands of vehicle applications for automotive enthusiasts worldwide. Whether you're searching for an air filter to help protect your engine and increase performance, a cabin air filter to keep the interior of your vehicle clean and fresh, or a home air filter to help protect the air you breathe at home—K&N® has the reputation for exceptional quality and customer service that you can trust. A long and storied racing heritage continues to contribute to the development of products for all types of vehicles and engines. For more information about K&N®, visit www.knfilters.com.
Forward-Looking Statements
This press release may contain forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements include, but are not limited to projections, statements regarding the company’s expected future performance, future financial condition, anticipated operating results, strategy plans, future liquidity and financial position. Any forward-looking statement made by the Company in this press release speaks only as of the date on which such statement was made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Statements can generally be identified as forward looking because they include words such as “believes,” “expects,” “intends,” “plans,” “will,” “believes,” “estimates,” “potential,” “predict,” “seek,” and variations thereof or “could,” “should” or words of similar meaning. Statements that describe the Company’s objectives, future plans or goals are also forward-looking statements, which reflect the current views of the Company with respect to future events and are subject to assumptions, risks and uncertainties that could cause actual results to differ materially.