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Wells Fargo Agents $504MM Refinance for TNT Crane & Rigging

September 09, 2021, 06:00 AM
Filed Under: Construction

TNT Crane & Rigging closed on a $385 million asset-based lending revolving credit facility and a new $119 million 2nd lien term loan (the "2L Facility").   Proceeds from the ABL Facility and the 2L Facility will be used to repay all outstanding amounts under TNT's Priority First Lien Credit Agreement and Takeback First Lien Credit Agreement, along with associated fees and expenses.  At close, TNT had $230 million borrowed under the ABL Facility, resulting in approximately $96 million of available liquidity under the borrowing base formulation of the ABL Facility.

Wells Fargo Bank is the Admin Agent and Joint Lead Arranger for the ABL Facility. Regions Bank and Fifth Third Bank are also Joint Lead Arrangers under the ABL Facility.

As a result of this refinancing, TNT expects annual savings in interest expense of approximately $10 million.  The ABL Facility comprises an aggregate committed facility of $385 million and a $75 million uncommitted accordion.  The 2L Facility includes an "all-PIK" component for interest at no additional cost.

"The new ABL and 2nd lien facilities provides TNT with material reductions in our cost of capital, while increasing our financial flexibility.  In addition, this capital structure provides TNT increased runway to continue our growth strategies at a much lower cost of capital, furthering our ability to increase returns to our shareholders," stated Deana Haygood, TNT's CFO.

Mike Appling, TNT's CEO, added, "We are very pleased with the support of our shareholder group.  That support was key to the tremendous execution and over subscription of the ABL facility.  Our management team is excited and optimistic to enter into a period of growth and playing offense."

Simpson Thacher & Bartlett LLP was counsel to TNT.

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