Houlihan Lokey Advises K2 Pure Solutions

Houlihan Lokey is pleased to announce the successful placement of a $340 million credit facility comprising a $30 million revolver, $225 million first lien term loan, and $85 million second lien term loan for K2 Pure Solutions, LP (K2). The transaction closed on January 30, 2024.

Founded in 2007 and located in Pittsburg, California, K2 is the owner and operator of the only scaled chlor-alkali facility that possesses a salt-to-bleach production capability on the U.S. West Coast. The company’s principal products include bleach, hydrochloric acid, chlorine, and caustic soda for highly recurring consumable applications in a variety of essential and growing end markets, including wastewater treatment, agriculture, sanitization, and various consumer and industrial applications. Through its blue-chip distributor customers, including Olin and Univar, the company serves as a critical supplier to hundreds of ultimate end users in the northern California market. The company’s proximity to its blue-chip distributor customers and regional end users, specifically municipal water treatment facilities, differentiates it from facilities located elsewhere in the U.S. K2 is majority-owned by its two co-founders and Centre Partners Management LLC, a leading middle-market private equity firm.

Houlihan Lokey served as the exclusive placement agent to K2, assisting the company in arranging, structuring, and negotiating the financing. Through thoughtful positioning and execution, Houlihan Lokey was able to achieve a comprehensive refinancing of K2’s existing senior and subordinated indebtedness.

Houlihan Lokey is one of the largest providers of private capital solutions in the world, raising approximately $25 billion in capital and advising on an additional $12 billion across 250+ transactions over the past two years.