Greenhill & Co. plans to syndicate a new $360 million secured loan under a term loan B structure. Goldman Sachs has been engaged to lead the syndication of the facility.

Consummation of the new term loan and its terms, including the final principal amount, interest rate and maturity, will depend on market and other conditions.

Greenhill is syndicating the new term loan to obtain overall terms that are more attractive than those provided in its existing $350 million secured term loan B and plans to use the proceeds from the new facility to replace its existing term loan, which will have an amortized balance of $319 million at the time of refinancing, pay fees and expenses associated with the refinancing, increase share repurchases and for general corporate purposes.

The firm has no assurance it will be able to consummate the refinancing transaction on terms that are acceptable or at all. In that case, the existing facility will remain outstanding and mature in October 2022.

The amount, interest rate and maturity of Greenhill’s existing $20 million revolving credit facility will remain unchanged.

“We performed well in 2018 and, with our recapitalization now 18 months old and our call premium expiring, we believe this is an opportune time as a more seasoned borrower to take another step in our recapitalization plan in order to better maximize shareholder value by refinancing our existing debt with lower cost new debt and extending out the maturity date. Further, to increase the flexibility available to us to return capital to shareholders we are seeking a modest increase over our original borrowing amount as well as an expansion of our share repurchase basket, an increase to the amount permitted for dividend distributions and other additional flexibility in the credit agreement,” said Scott L. Bok, Greenhill CEO.

Greenhill & Co. is an independent investment bank entirely focused on providing financial advice on significant mergers, acquisitions, restructurings, financings and capital raising to corporations, partnerships, institutions and governments globally. It acts for clients located throughout the world from its offices in New York, Chicago, Dallas, Frankfurt, Hong Kong, Houston, London, Madrid, Melbourne, San Francisco, São Paulo, Stockholm, Sydney, Tokyo and Toronto.