Daily News: March 13, 2014

GE Capital, Guggenheim Lead $212.5MM Rand Logistics Refi

Rand Logistics announced a $212.5 million financing comprised of a $140 million senior secured credit facility and a $72.5 million second lien facility to refinance its existing senior secured debt and accrued preferred dividends.

GE Capital led the syndicate providing the senior debt financing. Guggenheim Corporate Funding led the syndicate providing the second lien facility, and Barclays acted as exclusive placement agent.

The refinancing, combined with the company’s payment of its accrued preferred stock dividends, accomplishes the following financial objectives:

  • Reduces the company’s combined cost of debt and preferred stock to 7.0%

  • Extends debt maturities through 2019
  • Reduces mandatory debt amortization payments to less than $1.1 million per year through 2018
  • Reduces annual debt service and preferred stock payments by $2 million
  • Resets the dividend rate on the company’s convertible preferred stock from 12.0% to 7.75% per annum
  • Provides the company with the option to repurchase up to $7.5 million of its convertible preferred stock for par value plus any accrued dividends outstanding
  • “We are pleased to consummate the refinancing,” commented Joseph McHugh, CFO of Rand. “Besides reducing our combined cost of debt and preferred stock and extending our debt maturities, we are encouraged by the opportunity to retire up to $7.5 million of our convertible preferred stock at par. Additionally, the modest annual mandatory amortization payments associated with our new debt facilities will provide us with cash-flow flexibility.”