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KKR strengthens ties to Oz recycling company

  • Maya Ando
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Kohlberg Kravis Roberts (KKR) has invested approximately A$90 million in Australia Stock Exchange-listed recycling group CMA Corporation, prompting CMA to voluntarily suspend trading.

This will be the buyout firm’s second capital injection in the company this year.

The investment will be made from KKR’s Asset Management unit, which initially invested in CMA in March of this year. The unit of KKR has nearly $15 billion of assets under management, and largely invests in secured credit, bank loans and high yield securities.

Since February of last year, CMA has been reviewing its capital structure in an effort to find A$30 million of new equity. According to a statement, this capital would be used to refinance its existing debt facilities, coming as part of the company’s comprehensive recapitalization. This new investment is part of a restructuring proposal announced by CMA, and is still subject to approval by CMA's shareholders. Should it realized, KKR will control the between 71% and 85.5% of the company.

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