Great Lakes Dredge & Dock to repay some term debt with Aldabra merger

By Sara Rosenberg

New York, June 20 - Great Lakes Dredge & Dock Corp.'s term loan will be paid down by about $50 million as a result of its pending merger with Aldabra Acquisition Corp., according to a news release.

Aldabra will be supplying the funds for the paydown using the $50 million of its available cash that was raised in its initial public offering in February 2005.

Under the terms of the merger agreement, Great Lakes' parent company will merge with a wholly owned subsidiary of Aldabra, with Aldabra's subsidiary remaining as the surviving entity, but changing its name to Great Lakes Dredge & Dock Corp.

The Aldabra subsidiary will be owned about 67% by affiliates of Madison Dearborn Partners, LLC (current owner of Great Lakes), about 5% by Great Lakes management and about 28% by current Aldabra shareholders.

Effectively, all of the outstanding capital stock of Great Lakes' parent company will be exchanged for a minimum of $160 million of Aldabra common stock, subject to a post-closing working capital adjustment and an adjustment based upon Great Lakes' consolidated debt. This implies an enterprise value for Great Lakes of about $410 million, based on about $250 million of assumed debt at closing.

The transaction, which is anticipated to close during the fall of 2006, is subject to customary closing conditions including review under the Hart-Scott-Rodino Act and the approval of Aldabra's stockholders.

Great Lakes is an Oak Brook, Ill.-based provider of dredging services. Aldabra is a New York-based blank check company that was formed to acquire an unidentified operating business.

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