KPS Snaps Up Oldcastle Bonds to Secure Hand in Debt Overhaul

Private equity firm KPS Capital Partners is buying the discounted debt of its own company, Oldcastle BuildingEnvelope, in a bid to secure the upper hand in the glass giant’s looming financial overhaul.

KPS has bought chunks of Oldcastle’s $585 million in bonds at roughly 50 cents on the dollar, according to people familiar with the matter. It’s being viewed as a bid to preserve the value of its investment as a consortium of Oldcastle’s lenders prepares for a potentially contentious battle, the people said, asking not to be identified discussing private information.