Jeffries Agents Financing to Support HC2 Stake in Schuff
HC2 Holdings announced the completion of the previously announced acquisition of 2.5 million shares of common stock of Schuff International and negotiated an agreement to purchase an additional 200,000 shares of Schuff, representing an approximately 65% interest in Schuff.
The aggregate consideration for the shares of Schuff acquired was approximately $85 million, which was funded using the net proceeds from (i) the issuance of $30 million of preferred stock and $6 million of common stock of HC2, and (ii) the entry into a new senior secured credit facility providing for an eighteen month term loan of $80 million.
The senior secured credit facility has been established pursuant to a credit agreement by and among HC2, certain subsidiary guarantors of HC2, a lender group led by Jefferies Finance as administrative agent for the lenders and as collateral agent for the secured parties.
Philip A. Falcone, HC2’s chairman, president and CEO, stated, “We are thrilled to complete HC2’s first acquisition with the purchase of a majority interest in Schuff. Schuff has an impressive reputation as a steel fabrication and erection company and we look forward to working with the Schuff management team and employees.”
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