K&N Engineering has entered into a Restructuring Support Agreement with 100% of its lenders, the company announced.
Through the deal, K&N’s debt will be reduced by approximately $250 million and participating lenders will inject $60 million of cash into the business. K&N expects to complete the transaction in the first quarter of 2023.
Once completed, the recapitalization will provide K&N with increased financial flexibility to execute its growth strategies and continue investing in its automotive, industrial, and residential HVAC filtration technology, company representatives said. K&N also said that it remains committed to its vendors and employees, as well as its current initiatives and marketing collaborations.
K&N also announced that it has appointed Randy Bays as interim chief executive officer, effective Jan. 3. Bays succeeds Richard Bisson, who is stepping down as the company’s CEO.
Bays has run the company’s operations since joining K&N in March 2022. Prior to joining K&N, Bays served as the CEO of Kinetek, the president of Sensus and also held numerous other senior-operating positions at both GE and Bowmar Aerospace.
“Over the course of five decades, K&N has built a reputation for exceptional quality and customer service that millions of customers love and trust. With the overwhelming support of our financial partners and an infusion of new capital, we look forward to continuing to provide outstanding products and services to our customers,” said Bays. “We remain committed to serving our customers, supporting our racing partners and enhancing the performance of vehicles across the globe. Upon consummation of the transaction, we believe that K&N will be positioned to capitalize on tremendous growth opportunities both in the automotive aftermarket as well as industrial and residential HVAC markets worldwide.”