Auto lender lands important funding in restructuring process

Pennsylvania-based Keystone Automotive Operations has acquired significant funding from a branch of Goldman Sachs as it moves along in a restructuring process that will make it more equitable. According to a company statement, the lender received a $120 million first lien senior secured term loan from Goldman Sachs Partners as it institutes a recapitalization plan. That plan, according to Keystone, will help decrease the company's $295 million debt and a make it a stronger player in the aftermarket auto parts market. "We are very pleased with the progress we have made on the new term loan," Ed Orzetti, president and chief executive officer of Keystone, said in a statement. "With the key pieces of our financing in place, we continue to move forward in implementing a recapitalization plan that will reduce debt, strengthen our balance sheet and better position us for future growth opportunities and long-term success." This was the next in line of significant cash deals made by Keystone. In early January, the company landed equity agreements with Platinum Equity and Littlejohn & Co., which collectively with the company's management possess more than two-thirds of Keystone's senior subordinated notes due in 2013. Currently, Keystone says it has more than $43 million to run its daily operations.