Angelo Gordon Buys in Sale-Leaseback
Privately held investment advisor’s play to help KIK Custom Products beat back debt is represents a growing trend.
August 4, 2008
Angelo, Gordon & Co. bought six of KIK Custom Products’ North American facilities for about $30 million in a sale-leaseback transaction, it was announced Monday.
The proceeds of the deal will be used by KIK to eliminate some of its debt and to back new projects.
"In the today’s credit market, companies and sponsors are increasingly turning to sale-leaseback transactions to improve their balance sheets," said Gordon J. Whiting, founder and chief portfolio manager of AG Net Lease. "Angelo, Gordon’s deep experience in the leverage credit markets, coupled with its leadership in the real estate private equity space, enables AG Net Lease to underwrite the most complex of opportunities in a highly reliable and timely manner."
Whiting said it is likely Angelo Gordon will pursue additional plays in this space as more companies looking to eliminate debt in a market where sufficient leveraging options are harder to come by or more expensive seek additional options.
The KIK facilities are in California, Toronto, Ontario, Memphis, Florida and Virginia. KIK is a portfolio company of New York-based CI Capital Partners (formerly Caxton-Iseman Capital) since May 2007. KIK makes and distributes consumer products.
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