HOUSTON, September 7, 2021 / PRNewswire / – TNT Crane & Rigging LLC (“TNT”) closed on Jan. $ 385 million an asset-based revolving credit facility (the “ABL Facility”) and a new one $ 119 million Second Term Loan (the “2L Facility”). The proceeds from the ABL Facility and the 2L Facility will be used to repay all outstanding amounts under TNT’s First Lien Senior Loan Agreement and the First Lien Takeback Loan Agreement along with related fees and expenses. In the end, TNT had $ 230 million borrowed under the ABL facility, which equates to approx. $ 96 million the available liquidity according to the formulation of the loan base of the ABL Facility.
As a result of this refinancing, TNT expects annual savings in interest expenses of approx. $ 10 million. The ABL facility has a total committed facility of $ 385 million and a $ 75 million unbound accordion. The 2L facility includes an “all-PIK” component, which can earn interest at no additional cost.
“The new ABL and 2nd Lien facilities enable TNT to significantly reduce our cost of capital and at the same time increase our financial flexibility. In addition, this capital structure gives TNT a bigger runway to continue our growth strategies at a much lower cost of capital, which increases our ability to increase returns for our shareholders, “said Deana Haygood, Chief Financial Officer of TNT.
Mike Appling, CEO of TNT, added: “We are very pleased to have the support of our group of shareholders. This support has been key to the great implementation and oversubscription of the ABL facility. Our management team is excited and optimistic about entering a period of growth and offensive . ”
Wells Fargo Bank, NA 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 a consultant to TNT.
About TNT Crane & Rigging LLC
Headquarters in Houston, Texas and founded in 1985, TNT is the largest open crane service platform in North America with management positions in the core markets and regions for maintenance. The company operates through 40 offices in the Gulf Coast, the Rockies, and the southeastern regions of the United States and Western Canada. TNT’s fleet comprises 690 cranes, mostly mobile cranes, which are operated by over 1,600 skilled workers. TNT serves over 4,000 customers who operate predominantly in the downstream, commercial, power and infrastructure end markets.
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SOURCE TNT Crane & Rigging, Inc.
Their Oklahoma Competition https://www.bennettcrane.com is expanding into Texas, Arkansas, Kansas and Missouri.