TNT Crane & Rigging refinances loans
By D.Ann Shiffler08 September 2021
Annual savings in interest expense of approximately $10 million is expected.
TNT Crane & Rigging closed on a $385 million asset-based lending revolving credit loan (known as the ABL Facility) and a new $119 million 2 lien term loan, (known as the 2L Facity). Proceeds from both 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 closing, 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. 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 2 lien
facilities provide TNT with material reductions in our cost of capital, while increasing our financial flexibility,” said Deana Haygood, chief financial officer, TNT. “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.”
CEO Mike Appling said the TNT management tem is excited and optimistic to enter a period of growth and “playing offense.”
“We are very pleased with the support of our shareholder group,” Appling said. “That support was key to the tremendous execution and over subscription of the ABL facility.”
Headquartered in Houston, TX and founded in 1985, TNT is the largest open-shop crane services platform in North America with leadership positions in core maintenance end markets and geographies, TNT said. The company operates through 40 branches located throughout the Gulf Coast, Rockies and Southeastern regions of the U.S., along with Western Canada. TNT operates a fleet of 690 cranes and has a workforce of approximately 1,600 people. TNT serves more than 4,000 customers who predominantly operate in the downstream, commercial, power and infrastructure end markets, the company said.
TNT Crane & Rigging is ranked Number 9 on the American Cranes & Transport ACT 100 list of crane-owning companies published in June 2021.
Wells Fargo Bank, N.A. 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. Simpson Thacher & Bartlett LLP was counsel to TNT.