Willdan Group has entered into a $200 million Amended and Restated Credit Agreement (the "Credit Agreement") that expands the Company's available borrowing capacity, with a syndicate of BMO Harris Bank, N.A. (“BMO”), MUFG Union Bank, N.A., Bank of America N.A., Citibank, N.A. and U.S. Bank, N.A.
Image: Willdan secures £159m credit. Photo: Courtesy of rawpixel/Pixabay
The new Credit Agreement consists of a $100 million Term Loan A, $50 million Delayed Draw Term Loans, and $50 million revolving line of credit, each maturing on June 26, 2024. Subject to satisfying certain conditions described in the Credit Agreement, the Company may request that the banking syndicate increase the aggregate amount under the revolving line of credit and/or additional term loans by up to $100 million, for a total facility size of $300 million, although the banking syndicate is not obligated to do so. The facility is also expected to be used to fund future acquisitions and available for general operating purposes.
“We thank the banking syndicate for their support and welcome them as our partners for the future,” said Tom Brisbin, Willdan’s Chairman and CEO. “We have doubled the size of Willdan over the past three years, so this expanded credit facility will enable us to continue executing on our growth strategy.”
Willdan also announced today that it has completed its acquisition of substantially all of the assets of Onsite Energy Corporation. This acquisition adds a new market – the industrial sector – to those already served by Willdan. This acquisition provides industrial customers and utilities with deeper engineering, broader technical skills, and national reach.
In connection with the closing of the acquisition, two executives of Onsite Energy agreed to purchase shares of Willdan common stock (one purchasing 37,484 shares and one purchasing 15,618 shares), on or before September 14, 2019 at a price equal to the volume-weighted average of closing price for the ten trading days prior to, but not including, June 19, 2019 in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended (Securities Act), in reliance on the exemptions set forth in Section 4(a)(2) of the Securities Act and Rule 506 under Regulation D. The executives have agreed not to transfer such shares for three years.
The description of the new credit agreement above does not purport to be complete and is qualified in its entirety by reference to the expanded credit facility, to be filed on Form 8-K with the Securities and Exchange Commission today.
Source: Company Press Release