Société Générale Provides Hill International Debt Refinancing
Hill International announced that it has received a commitment from Société Générale to provide a refinancing of the company’s existing senior debt facilities. This transaction, which is being arranged by Société Générale’s U.S. broker-dealer affiliate SG Americas Securities, will provide senior secured debt facilities to Hill in the aggregate principal amount of $165 million.
The debt facilities consist of a six-year term loan facility of $120 million and five-year revolving credit facilities totaling $45 million consisting of a $30 million U.S. dollar-denominated facility to be made available to Hill and a $15 million Euro-denominated facility to be made available to Hill’s subsidiary Hill International N.V.
The revolving credit facilities include a $35 million sub-limit for letters of credit with $25 million allocated to the U.S. revolver and $10 million allocated to the international revolver. The credit facilities are subject to the satisfaction of certain specified conditions and are expected to close during August 2014.
The net proceeds of the new debt facilities, together with the net proceeds of the equity offering described below, will be used to pay off and terminate Hill’s existing senior credit facility with a bank group led by Bank of America and the existing second lien term loan with funds managed by Tennenbaum Capital Partners.
Hill International provides program management, project management, construction management, construction claims and other consulting services primarily to the buildings, transportation, environmental, energy and industrial markets.
To read the entire Hill International press release, click here.