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Great Lakes lifts revolver commitment to $210 million via SunTrust
By Toni Weeks
San Luis Obispo, Calif., Sept. 17 – Great Lakes Dredge & Dock Corp. entered into the fifth amendment to its senior revolving credit facility on Sept. 15 with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The amendment increased the revolving commitment by $35 million to $210 million by securing an incremental commitment from a new lender, SunTrust Bank. It also removed the $125 million limitation on letters of credit so that Great Lakes may now fully use the revolver for letters of credit.
Additionally, the amendment decreased the required ratio of aggregate orderly liquidation value of pledged collateral to 1.27 times from 1.5 times the aggregate revolving commitment.
Finally, the amendment removed the springing lien and unsecured feature of the credit agreement; which will remain secured and collateralized by perfected liens on some of the company’s vessels and its domestic accounts receivable subject to permitted liens and prior interest of other parties.
In connection with the amendment, Zurich American Insurance Co., the company’s surety provider, announced it plans to seek permitted second mortgages on the same vessels securing the obligations under the credit agreement.
Great Lakes also announced that it terminated its $24 million international letter of credit facility with Wells Fargo Bank, NA. The facility was terminated on Monday, at which time there were no letters of credit or other debt outstanding under the facility, the filing noted.
Great Lakes is an Oak Brook, Ill.-based provider of dredging services.
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