We advised K&N in connection with its recapitalization

Davis Polk advised K&N Engineering, Inc. and certain of its affiliates in connection with a comprehensive recapitalization that deleveraged the company’s balance sheet, provided an infusion of new capital and increased K&N’s financial flexibility.

On February 14, 2023, K&N consummated a recapitalization transaction that was supported by 100% of its lenders and reduced its debt by approximately $250 million. Participating lenders also injected $60 million of cash into the business in connection with the transaction. As a result of the recapitalization, a group of institutional investors, through their managed funds, have become majority owners of the company.

Since 1969, K&N has been an industry leader in filtration technology – offering products to increase performance, protection and longevity in thousands of vehicle applications for automotive enthusiasts worldwide. A long and storied racing heritage continues to contribute to the development of products for all types of vehicles and engines.

The Davis Polk restructuring team included partner Brian M. Resnick, counsel Steven Z. Szanzer and associates Michael Pera and Amber Leary. The finance team included partner J. W. Perry and counsel Jack Orford. Partner John D. Amorosi provided corporate advice. Counsel Robert (Bodie) Stewart provided capital markets advice. The tax team included partner David H. Schnabel and counsel Tracy L. Matlock. The executive compensation team included partner Adam Kaminsky and associate Charlotte R. Fabiani. Members of the Davis Polk team are based in the New York and Washington DC offices.