GLDD Secures $150 Million Second-Lien Credit Agreement

Great Lakes Dredge & Dock Corporation (GLDD) announced on April 24 that it has entered into a $150 million, five-year, senior secured second-lien credit agreement with Guggenheim Credit Funding LLC on behalf of one or more clients.

The company borrowed $100 million under the agreement on the closing date and has the option to draw an additional $50 million for a period of 12 months following the closing date of the initial loan. The loans under the second-lien credit agreement funded on the closing date were used to repay amounts outstanding under the ABL credit agreement and to pay fees associated with the transactions and will be used to fund upcoming new-build payments, GLDD said. The delayed draw portion of the term loans, if funded, will be used for future new-build payments, ongoing working capital and other general corporate purposes.

“The second-lien financing shores up our balance sheet and provides additional liquidity to complete our new-build program,” said Scott Kornblau, GLDD senior vice president, chief financial officer and treasurer. “The delayed draw feature allows Great Lakes to lock in a commitment for additional long-term capital while giving us the flexibility to pursue financing alternatives, including Title XI. We are confident in our long-term strategy and remain committed to delivering value to our shareholders and maintaining a strong balance sheet.”

Lazard Frères & Company LLC acted as placement agent and sole financial adviser to the company in connection with the second-lien credit agreement.