MARCH 13, 2014 — Great Lakes bulk vessel operator Rand Logistics, Inc. (NASDAQ: RLOG) reports it has completed a $212.5 million financing comprised of a $140.0 million senior secured credit facility and a $72.5 million second lien facility to refinance its existing senior secured debt and accrued preferred dividends.
Rand says that the refinancing, combined with the company's payment of its accrued preferred stock dividends, accomplishes the following financial objectives:
- Reduces the company's combined cost of debt and preferred stock to 7.0%;
- Extends debt maturities through 2019;
- Reduces mandatory debt amortization payments to less than $1.1 million per year through 2018;
- Reduces annual debt service and preferred stock payments by $2 million;
- Resets the dividend rate on the company's convertible preferred stock from 12.0% to 7.75% per annum; and
- Provides the company with the option to repurchase up to $7.5 million of its convertible preferred stock for par value plus any accrued dividends outstanding.
"We are pleased to consummate the refinancing," commented CFO Joseph McHugh. "Besides reducing our combined cost of debt and preferred stock and extending our debt maturities, we are encouraged by the opportunity to retire up to $7.5 million of our convertible preferred stock at par. Additionally, the modest annual mandatory amortization payments associated with our new debt facilities will provide us with cash flow flexibility."
The senior debt financing was provided by a syndicate led by GE Capital Corporation and the second lien facility was provided by a syndicate led by Guggenheim Corporate Funding, LLC. Barclays acted as exclusive placement agent for the second lien facility.