US private equity firm KKR is to invest in Australian recycling group CMA Corporation, in a deal said to be worth $90m.
The deal is hoped to allow the company to recommence trading of its shares on the Australian Stock Exchange, after voluntarily suspending trading in February 2010.
The investment was made through the firm’s KKR Asset Management (KAM) subsidiary, which first invested in CMA in March 2011, becoming its largest holder of syndicated debt.
If approved by CMA’s shareholders, the deal will see the company recommence trading around 26 July.
“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,” said Jamie Weinstein, co-head of KKR’s special situations group.
CMA specialises in the processing and recycling of secondary ferrous and non-ferrous metal products, with customers in Australia, Asia, New Zealand and North America.
Launched by KKR in 2004, KAM invests in secured credit, bank loans, equities and alternative assets such as mezzanine financing and distressed opportunities.
Copyright © 2011 AltAssets