By Devika Patel
Knoxville, Tenn., Feb. 7 – Davey Tree Expert Co. completed a $25 million private placement of 4% series B guaranteed senior notes due Sept. 21, 2028 with PGIM, Inc. on Tuesday, according to an 8-K filing with the Securities and Exchange Commission.
Following the placement, the company now has $75 million principal amount of notes outstanding under its Sept. 21, 2018 note purchase and private shelf agreement with the investor.
The investor may buy up to $25 million more of the notes.
Beginning Sept. 21, 2024, the company will pay five equal, annual principal payments.
The proceeds will be used for general corporate purposes and to pay down borrowings under the company’s revolving credit facility.
The notes are guaranteed by subsidiaries Davey Tree Surgery Co., Wolf Tree, Inc., Care of Trees, Inc. and Davey Resource Group, Inc.
Kent, Ohio-based Davey Tree provides residential and commercial tree and landscaping services throughout North America.
| Issuer: | Davey Tree Expert Co.
|
| Guarantors: | Davey Tree Surgery Co., Wolf Tree, Inc., Care of Trees, Inc. and Davey Resource Group, Inc.
|
| Issue: | Series B guaranteed senior notes
|
| Amount: | $25 million
|
| Maturity: | Sept. 21, 2028
|
| Coupon: | 4%
|
| Call: | Make-whole call
|
| Investor: | PGIM, Inc.
|
| Settlement date: | Feb. 5
|
| Distribution: | Private placement
|
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