NEW YORK CITY A recapitalization of Motor Coach Industries, the No. 1 supplier of new motorcoaches in North America, has been completed by its owners, KPS Capital Partners.

KPS announced it had arranged a $130 million term loan in conjunction with an amendment and extension of MCIs existing $115 million asset-based revolving credit facility.

Proceeds of the recapitalization, according to KPS, are being used to refinance outstanding debt at better interest rates, to fund a $120 million cash distribution to investors, and to support the companys continued growth.

"This successful recapitalization validates the incredible transformation MCI has made under KPS ownership and we are pleased to return capital to our stockholders," said MCI CEO Rick Heller.

"Our conservative capital structure and the financial support of our stockholders provide us with the resources to support our customers and important growth initiatives. We thank our customers, suppliers and employees for their contributions to our remarkable success," Heller added.

Not unremarkably, KPS viewed the refinancing similarly: "Following the recapitalization, MCI remains conservatively capitalized with the continued support of its controlling shareholder, KPS, a private equity firm with more than $6.1 billion of assets under management."

KPS, Daimler North America Corp. and MCI management continue to own 100 percent of MCI following the recapitalization.

The revamped asset-based revolving credit facility was provided by a syndicate of banks with Wells Fargo Capital Finance acting as the loan arranger, and the term-loan financing was provided by TCW Direct Lending Group.

In an interview with a Winnipeg, Manitoba, newspaper, Heller noted that under KPS ownership, MCI has "probably spent about $20 million in the last few years (on capital improvements) and maybe about $1 million per year in training."

KPS, a private equity fund, has owned MCI since the end of 2010, taking control of the company as part of a multi-stakeholder recapitalization of MCII Holdings, the corporate parent of MCI.

The ownership change occurred roughly 17 months after MCI emerged from bankruptcy reorganization in early 2009.

Two years ago, MCI concluded a deal with Daimler Buses to become the exclusive North American distributor of Setra coaches. That deal gave Daimler a minority ownership stake in MCI.