Ares in Talks Over Preferred Equity Investment for Warburg’s CPP
- The investment would help de-lever CPP’s balance sheet
- Owner Warburg Pincus weighing options for first-lien debt
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Ares Management Corp. is leading a new investment of preferred equity into an aerospace parts manufacturer owned by private equity firm Warburg Pincus, according to people with knowledge of the matter.
The investment in Consolidated Precision Products would reduce the company’s leverage and provide additional liquidity, the people said, asking not to be named discussing a private transaction. Proceeds would fully refinance $356 million of second-lien debt, partially repay a $1.1 billion first-lien leveraged loan maturing in 2025, and add cash to the balance sheet, they added.