Great Lakes Dredge & Dock to obtain new credit facility via CSFB and Lehman

By Sara Rosenberg

New York, Nov. 20 - Great Lakes Dredge & Dock Corp. is expected to obtain a new credit facility to help support its buyout by Madison Dearborn Partners LLC from Vectura Holding Co. LLC, a portfolio company of Citigroup Venture Capital Ltd., for $340 million in cash.

Credit Suisse First Boston and Lehman Brothers are the joint lead arrangers on the bank financing, according to a syndicate document.

All other details on the loan, such as size, timing and pricing, are still to be determined.

The acquisition is subject to customary closing conditions, including review under the Hart-Scott-Rodino Act, and is targeted to close by the end of 2003, according to a Madison Dearborn news release.

Following the acquisition announcement Standard & Poor's placed its B+ corporate credit rating on Great Lakes Dredge & Dock on CreditWatch with negative implications.

Although the financing necessary to complete the transaction has been committed, S&P said, details have not been disclosed. However, Madison Dearborn, as an equity sponsor with more than $7.5 billion of investments, may further increase debt leverage of Great Lakes Dredge & Dock.

S&P said it will meet with management to discuss the new capital structure, liquidity, and any changes to the business strategy under new ownership before taking a further rating action.

Credit Suisse First Boston and Dechert LLP advised Citigroup Venture Capital on the transaction. Lehman Brothers acted as the financial adviser to Madison Dearborn Partners and Kirkland & Ellis LLP acted as the legal adviser.

Great Lakes Dredge & Dock is an Oak Brook, Ill., provider of dredging services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.