Davis Polk advised the initial purchasers on a Rule 144A/Regulation S offering by PM General Purchaser LLC of $600 million aggregate principal amount of its 9.500% senior secured notes due 2028.

Concurrently with the notes offering, Davis Polk also advised the administrative agent and the revolving facility lenders in connection with PM General Purchaser LLC’s $75 million revolving credit facility. The notes and the facility together form the debt financing provided to KPS Capital Partners, LP in connection with its acquisition of AM General LLC.

KPS and its affiliates have approximately $11.5 billion of assets under management (as of June 30, 2020). For over two decades, the partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS’s portfolio companies currently have aggregate annual revenues of approximately $7.7 billion, operate 146 manufacturing facilities in 26 countries, and have nearly 26,000 employees, directly and through joint ventures worldwide. 

AM General is a vertically integrated manufacturer of specialty vehicles and mobility solutions for defense and non-defense customers globally. AM General is the leading producer of light tactical vehicles by number of vehicles produced annually, having produced an average of approximately 3,300 LTVs per year over the last five years and 4,084 LTVs in fiscal year 2019. AM General is the designer and sole manufacturer of a type of LTV called the High Mobility Multipurpose Wheeled Vehicle, the most widely used military vehicle in the world with approximately 250,000 vehicles currently in operation worldwide.

The Davis Polk capital markets team included partner Pedro J. Bermeo and associates Hillary A. Coleman, Johnathan M. Nixon, Moses Farzan Nekou and Joshua B. Pittell. The finance team included partner Meyer C. Dworkin, counsel Benjamin Cheng and Darren Mahone and associates Kelsey Avery and Stephen H. Karp. All members of the Davis Polk team are based in the New York office.

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