FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


PNC Agents $135MM ABL Facility for Layne Christensen Company

April 16, 2014, 07:51 AM
Filed Under: Energy Services

Layne Christensen Company has signed a new five-year $135 million senior secured asset-backed revolving credit facility (the "ABL Facility") with PNC Bank National Association as Administrative Agent, Co-collateral Agent and Lender; Wells Fargo Bank N.A. as Co-collateral Agent and Lender and Jefferies Finance LLC as Lead Arranger, Book Running Manager, Syndication Agent and Lender. The ABL Facility will bear interest at a rate of LIBOR plus 2.75 - 3.25%, depending on average utilization, as determined quarterly. The ABL Facility has an accordion feature that could increase the borrowing capacity to up to $200 million.

Layne will initially use funds available under the ABL Facility to cash collateralize approximately $31 million of outstanding letters of credit associated with its prior bank agreement until such letters of credit can be transitioned to the ABL Facility and from time to time for working capital and general corporate purposes. In connection with the closing of the ABL Facility, Layne terminated its prior $150 million credit facility.

Rene Robichaud, President and CEO of Layne, said, "We are pleased with the support of our new banking group and the results of this financing. Our new ABL Facility lowers Layne's borrowing costs and provides the flexibility and structure appropriate for the project-oriented nature of Layne's business.  In combination with our previously announced financing activities, we believe we have secured a stable, adaptable base of capital to implement our growth objectives."

Layne is a global water management, construction and drilling company, providing responsible solutions to the world of essential natural resources — water, mineral and energy.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.