Limbach Holdings Announces Successful Completion of Debt Refinancing
April 12 2019 - 08:00AM
Business Wire
Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the
“Company”) today announced that it has entered into a $65 million
senior secured credit facility, comprised of a $40 million term
loan which will refinance existing indebtedness, and a $25 million
delayed draw term loan to be used to finance potential
acquisitions. The lead arranger of the term loan facility is
Colbeck Capital Management, LLC.
The Company also announced the closing of a $15 million senior
secured ABL revolving credit facility with Citizens Bank, N.A., a
member of the prior credit facility syndicate. The revolving credit
facility will be used for general corporate purposes.
Charlie Bacon, CEO of Limbach, commented, “We are pleased to
have successfully concluded our debt refinancing, which provides
considerable flexibility for Limbach to grow well into the future.
We have worked over the last several months to organize a debt
capital structure that supports the Company’s plan for both organic
growth and M&A-driven expansion in the coming years. This
refinancing creates a capital structure with greater flexibility to
support the Company's strategic plan, and we are pleased to have
the strong support of our new lending partners as we move forward.
We are also pleased to have the continuing support of Travelers
Insurance Company as underwriter for our surety bond facility. In
the coming days, we expect to release our full year 2018 and fourth
quarter financial results, and to hold our quarterly conference
call shortly thereafter.”
Refinancing Terms
The $65 million senior secured credit facility consists of (a)
$40 million term loan fully funded at closing, and (b) $25 million
delayed draw term loan which is undrawn at closing. Both loans have
a three-year maturity and bear interest at LIBOR +800bps.
The $15 million senior secured ABL revolving credit facility has
a three-year maturity and bears interest at LIBOR plus an
availability-based margin of 300-350bps.
Each of the credit facilities contain customary representations,
warranties and affirmative and negative covenants.
In connection with the Refinancing Agreement, the Company issued
to certain lenders thereunder warrants to purchase up to an
aggregate of 263,314 shares of the Company’s common stock at an
exercise price of $7.63 per share. The number of shares of common
stock issuable upon exercise of the warrants is subject to
reduction to the extent there is available borrowing capacity under
the delayed draw term loan at the time such warrants are exercised.
The warrants have a five-year term.
About Limbach
Founded in 1901, Limbach is the 9th largest mechanical systems
solutions firm in the United States as determined by Engineering
News Record. Limbach provides building infrastructure services,
with an expertise in the design, installation and maintenance of
HVAC and mechanical, electrical, and plumbing systems for a
diversified group of commercial and institutional building owners.
Limbach employs more than 1,700 employees in 14 offices throughout
the United States. The Company’s full life-cycle capabilities, from
concept design and engineering through system commissioning and
recurring 24/7 service and maintenance, position Limbach as a
value-added and essential partner for building owners, construction
managers, general contractors and energy service companies.
Forward-Looking
Statements
We make forward-looking statements in this press release within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements relate to expectations or
forecasts for future events, including, without limitation, our
future financial or business performance or strategies, and in
particular statements regarding the use of proceeds of the new
credit agreement. These statements may be preceded by, followed by
or include the words “may,” “might,” “will,” “will likely result,”
“should,” “estimate,” “plan,” “project,” “forecast,” “intend,”
“expect,” “anticipate,” “believe,” “seek,” “continue,” “target” or
similar expressions. These forward-looking statements are based on
information available to us as of the date they were made and
involve a number of risks and uncertainties which may cause them to
turn out to be wrong. Accordingly, forward-looking statements
should not be relied upon as representing our views as of any
subsequent date, and we do not undertake any obligation to update
forward-looking statements to reflect events or circumstances after
the date they were made, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws. As a result of a number of known and
unknown risks and uncertainties, our actual results or performance
may be materially different from those expressed or implied by
these forward-looking statements. Please refer to our most recent
annual report on Form 10-K, as well as our subsequent filings on
Form 10-Q and Form 8-K, which are available on the SEC’s website
(www.sec.gov), for a full discussion of the risks and other factors
that may impact any forward-looking statements in this press
release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190412005239/en/
Investor Relations:The Equity Group Inc.Jeremy Hellman,
CFASenior Associate(212) 836-9626 / jhellman@equityny.comorLimbach
Holdings, Inc.John T. Jordan, Jr.Executive Vice President and Chief
Financial Officer(301) 623-4799 / john.jordan@limbachinc.com
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