Cleveland, OH – Key Principal Partners (KPP), a $1 billion private equity firm, announced today an investment of $7.5 million in subordinated debt in CG Electrodes LLC (C/G). The transaction, made to refinance existing debt and recapitalize the company through the repurchase of stock from minority shareholders, will increase the holdings of NMCG Holdings, the family investment vehicle of C/G Chairman Nathan Milikowsky, as well as management’s ownership position.
C/G is a leading manufacturer of graphite electrodes, which are graphitized carbon rods used in electric arc furnaces to melt steel scrap during steel production. Electrodes operate in extreme conditions of up to 5,000 degrees Fahrenheit. C/G produces ultra-high performance (UHP) grade electrodes and is headquartered in St. Marys, Pennsylvania.
“We’re very pleased with our investment in C/G,” said Jon Herbst of KPP. “Our sponsorless mezzanine financing was an ideal vehicle for this transaction, allowing Nathan Milikowsky and operating management to increase their ownership stake in a company that they have successfully repositioned over the last two years.”
As part of the transaction, KeyCorp’s commercial bank provided the senior debt for the transaction. C/G represents the first transaction where KPP and KeyCorp provided a “one stop” financing solution.
About Key Principal Partners
Key Principal Partners (KPP) is a nationally recognized private investment firm providing capital to middle market companies throughout North America. KPP utilizes mezzanine and equity capital to fund the growth, buyout, refinancing or acquisition of profitable companies. In addition, KPP provides liquidity to shareholders of privately held stock. Distinctively, KPP’s flexible approach to structuring investments does not require control of companies. KPP has approximately $1 billion in capital under management and can invest $5 million to $25 million in companies with at least $20 million in revenue. Headquartered in Cleveland, KPP is affiliated with KeyCorp, a $90 billion financial services firm and has offices in Boston, Greenwich and San Francisco. Visit us at www.keyprincipalpartners.com.
Cleveland-based KeyCorp (NYSE: KEY) is one of the nation’s largest bank-based financial services companies, with assets of approximately $92 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally.