Great Lakes Dredge & Dock, a provider of dredging services in the U.S., entered into a five-year, $150 million senior secured second-lien credit agreement with Guggenheim Credit Funding on behalf of one or more clients. Great Lakes Dredge & Dock borrowed $100 million under the second lien credit agreement on the closing date and has the option to draw an additional $50 million for a period of 12 months following the closing date of the initial loan. The loans under the second lien credit agreement funded on the closing date were used to repay amounts outstanding under the company’s ABL credit agreement and to pay fees associated with the transactions. The remaining proceeds will be used to fund upcoming newbuild payments. The delayed draw portion of the term loans, if funded, will be used to fund future newbuild payments, ongoing working capital and other general corporate purposes._x000D_
_x000D_
The second lien credit agreement contains customary representations and affirmative and negative covenants as well as customary events of default. The obligations under the second lien credit agreement are secured on a second-priority basis by substantially all of the company’s assets._x000D_
_x000D_
“The second-lien financing shores up our balance sheet and provides additional liquidity to complete our new build program,” Scott Kornblau, senior vice president, CFO and treasurer of Great Lakes Dredge & Dock, said. “The delayed draw feature allows Great Lakes to lock in a commitment for additional long-term capital while giving us the flexibility to pursue financing alternatives, including Title XI. We are confident in our long-term strategy and remain committed to delivering value to our shareholders and maintaining a strong balance sheet.”_x000D_
_x000D_
Lazard Frères acted as placement agent and sole financial advisor to Great Lakes Dredge & Dock in connection with the second lien credit agreement.
Forward for Specialty Finance
