KPS Capital's Global Brass files for IPO

Private equity firm KPS Capital Partners LP is taking portfolio company Global Brass and Copper Inc. public, offering about 9.4 million shares expected to price at between $15 and $17 each, the company said in a prospectus filed Monday.

At the midpoint of $16, KPS -- which is selling all the shares offered -- stands to raise $150 million. If the underwriters exercise their option to acquire an additional 1.4 million shares, KPS could gain $172.5 million.

That, added to $312 million in dividends the company has paid the sponsor, means that after the offering, KPS may have recouped $434.5 million.

KPS didn't return phone calls seeking further information on the offering.

Schaumburg, Ill.-based Global Brass is a converter, fabricator, distributor and processor of specialized copper and brass products in North America. The company engages in metal melting and casting, rolling, drawing, extruding and stamping to fabricate finished and semifinished alloy products from processed scrap, copper cathode and other refined metals.

The company posted net sales of $1.7 billion in 2012, down from $1.8 billion a year earlier.

New York-based KPS, which has $6 billion in assets under management, started up Global Brass in November 2007 to acquire the worldwide global metals business of Olin Corp. for $400 million.

Then KPS extracted a number of dividend payments from the company. In the first quarter of 2010, Global Brass paid KPS a dividend of $50 million funded with cash from its balance sheet. In August 2010, the company paid a $102 million dividend to the private equity firm and in June it paid another $160 million.

Since its formation, Global Brass has made one acquisition. In February 2008, the company acquired some operating assets of Bolton Metal Products Co. for an undisclosed amount.

Global Brass plans to list on the New York Stock Exchange under the symbol BRSS.

Global Brass originally filed to go public in October 2011. Goldman, Sachs & Co. and Morgan Stanley are joint bookrunners on the deal.