Great Lakes Dredge enters up to $150 million second-lien credit agreement

By Wendy Van Sickle

Columbus, Ohio, April 24 – Great Lakes Dredge & Dock Corp. entered into a $150 million five-year senior secured second-lien credit agreement with Guggenheim Credit Funding, LLC, according to a news release.

The company borrowed $100 million under the credit agreement at closing with the additional $50 million available for 12 months.

Loans funded at closing were used to repay amounts outstanding under the company’s ABL credit agreement and to pay fees associated with the transactions and 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.

The obligations under the second lien credit agreement are secured on a second-priority basis by substantially all of the company’s assets.

“The second-lien financing shores up our balance sheet and provides additional liquidity to complete our new build program. 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,” Scott Kornblau, Great Lakes’ senior vice president, chief financial officer and treasurer, said in the release.

Great Lakes Dredge is a Houston-based provider of dredging services.

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