Great Lakes Dredge & Dock details $250 million three-year revolver

By Tali Rackner

Norfolk, Va., Jan. 9 – Great Lakes Dredge & Dock Corp. added details to its new $250 million three-year revolving credit facility via administrative agent PNC Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

The Dec. 30 credit agreement, which replaces the former revolving credit agreement, provides for an up to $250 million senior secured revolving credit facility with an up to $250 million sublimit for standby letters of credit and an up to $25 million sublimit for swingline loans. The maximum borrowing capacity is determined by a formula and may fluctuate depending on the value of the collateral included in such formula at the time of determination.

The agreement also includes an up to $100 million accordion option.

Interest is equal to Libor plus 250 basis points to 300 bps, depending on the quarterly average undrawn availability on the senior secured revolving credit facility. The unused fee ranges from 25 bps to 37.5 bps, based on the amount of average daily outstandings.

As previously reported, Great Lakes must maintain a maximum fixed charge coverage ratio of 1.1 times and is also restricted in the amount of capital expenditures it may make in each of the next three fiscal years.

The credit facility will be used to refinance the former revolver and term loan agreement, to pay fees and expenses related to the new credit facility, for permitted acquisitions and for working capital and general corporate purposes.

The facility matures on Dec. 30, 2019; provided that the maturity date will be accelerated to Nov. 3, 2018 if the company fails to refinance its unsecured senior notes that mature Feb. 1, 2019. The refinanced notes must have a maturity on or after March 31, 2020.

PNC Capital Markets LLC, PrivateBank and Trust Co., SunTrust Robinson Humphrey, Inc., Capital One, NA and Bank of America, NA acted as joint lead arrangers and bookrunners on the deal with Texas Capital Bank, NA as syndication agent and Woodforest National Bank as documentation agent.

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

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