Posted on May 22, 2017
Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) announced today that it has priced its previously-announced offering of $325 million aggregate principal amount of its newly-issued unsecured senior notes due 2022.
The 2022 Notes were priced at par with a coupon rate of 8.000%. The 2022 Notes will mature on May 15, 2022. Each of the Company’s existing and future wholly owned domestic subsidiaries that guarantee its senior secured revolving credit facility will guarantee the 2022 Notes.
The 2022 Notes will be sold to qualified institutional buyers pursuant to Rule 144A and to certain persons outside the United States pursuant to Regulation S, each under the Securities Act of 1933, as amended.
The Company intends to use the net proceeds from the Debt Offering to complete its previously-announced pending cash tender offer, subject to the terms and conditions described in the related tender offer documents dated May 12, 2017, to purchase any and all of the $275 million aggregate principal amount of the Company’s outstanding 7.375% Senior Notes due 2019, and to redeem any 2019 Notes that remain outstanding following the completion of the Tender Offer, including the payment of accrued and unpaid interest payable on the 2019 Notes purchased under these transactions and all related fees and expenses. The Company expects to use any remaining net proceeds from the Debt Offering after the completion of the Refinancing Transactions to reduce the Company’s indebtedness under its senior secured revolving credit facility.
The 2022 Notes and the guarantees have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute (i) an offer to sell or the solicitation of an offer to buy the 2022 Notes, the related guarantees or any other securities, (ii) an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction, (iii) an offer to purchase or a solicitation of an offer to sell the 2019 Notes or any other securities or (iv) a notice of redemption of the 2019 Notes under the indenture governing such notes.
The issuance of the 2022 Notes is expected to close on May 24, 2017, subject to customary closing conditions, but is not conditioned upon consummation of the Tender Offer.
Source: Globe Newswire
