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Contact:
For
Behrman Capital:
David Lilly / Michael Freitag
Kekst and Company
(212) 521-4800
BEHRMAN CAPITAL COMPLETES $120 MILLION
HIGH YIELD DIVIDEND RECAPITALIZATION FOR
WOODCRAFT INDUSTRIES, INC.
-- In Related Transaction, Woodcraft Obtains New Senior Secured
$25 Million Revolving Credit Facility --
NEW YORK, February 20, 2004 — Behrman Capital, a
private equity investment firm based in New York and San Francisco,
announced today that it has completed a $120 million high yield dividend
recapitalization for WII Components, Inc., parent of Behrman portfolio
company Woodcraft Industries, Inc. Behrman Capital acquired Woodcraft
through a $145 million transaction in April 2003.
Under terms of the high yield placement, WII Components, Inc. has issued
$120 million in 10% senior unsecured notes due 2012.
“We are very pleased with the success of this offering in the public debt
markets,” said Grant G. Behrman, Managing Partner of Behrman Capital.
“Woodcraft’s consistently strong financial performance has allowed us to
establish this new capital structure, one which will provide the Company
with significantly increased financial flexibility and new resources to
pursue its growth and expansion. In addition, the transaction will generate
a distribution to the Behrman-led investor group of approximately $38
million, or over 50% of the original equity investment made just 10 months
ago. We are particularly pleased that Behrman Capital’s Limited Partners
will benefit through a transaction that also provides Woodcraft
significantly expanded financial resources.”
As part of the transaction, WII Components, Inc. has repaid the entire
outstanding balance on its existing credit facility, consisting of three
outstanding term loans and a $15 million revolving credit facility. The
related credit agreement has been terminated.
The high yield offering was led by Credit Suisse First Boston and co-managed
by Wachovia Securities. Goodwin Procter acted as legal advisor to Behrman
Capital for the transaction.
Simultaneous with its high yield offering, WII Components, Inc. has also
obtained a new $25 million senior secured revolving credit facility provided
by Antares Capital. The senior secured revolving credit facility was undrawn
at closing.
Woodcraft Industries, Inc. is one of the largest suppliers of outsourced
doors and components to the kitchen cabinet and bath vanity industries,
offering products under the Woodcraft, PrimeWood and Brentwood names.
Headquartered in St. Cloud, Minnesota, the Company’s product line includes
assembled solid wood doors and components, face frames, drawer parts, veneer
raised panel doors, rigid thermofoil doors, and profile wrapped
architectural millwork, all of which are manufactured to customers’
specifications. The Company has manufacturing facilities in Minnesota, North
Dakota, Oregon and Kentucky.
Based in New York City and San Francisco, Behrman Capital was founded in
1992 by Darryl G. and Grant G. Behrman. The firm invests in management
buyouts, leveraged buildups and recapitalizations of established growth
companies and provides expansion capital to emerging growth companies. The
company’s investments are focused primarily in four industries: information
technology, business services, contract manufacturing, and outsourcing. The
firm currently has a combined capital base exceeding $1.8 billion.
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