On Tuesday, July 21, 2020, Borden Dairy (“Borden”) consummated the sale of substantially all of its assets to New Dairy OpCo, LLC (“New Dairy”) – a joint venture between our client, KKR Credit Advisors (US) LLC and certain of its affiliates and managed funds (“KKR”) and Capitol Peak Partners.
Borden and its subsidiaries and affiliates filed for Chapter 11 in the District of Delaware on January 5, 2020. During (and prior to) the bankruptcy cases, King & Spalding represented KKR in its capacity as Borden’s largest secured lender, holding $175 million of Borden prepetition term loans. King & Spalding continues to represent KKR in connection with the wind-down of the bankruptcy cases, which remain ongoing.
The total consideration under the sale is approximately $340 million, including a $110 million credit bid by KKR. KKR also provided New Dairy with a $42 million term loan as part of the financing for the sale.