Behrman Capital has completed a $570 million recapitalization of Pelican Products. Proceeds from the recapitalization were used to repay existing debt and accrued interest, pay fees and expenses, and pay a cash dividend to the shareholders of Pelican.
The recapitalization is comprised of a $365 million first-lien term loan, a $175 million second-lien term loan, and a $30 million revolving credit facility, which was unfunded at close. Credit Suisse and Morgan Stanley acted as syndication agents and co-bookrunners on the transaction, and Credit Suisse was the administrative agent.
“We are very pleased to have completed this recapitalization, which allowed us to return capital to shareholders, significantly lower Pelican’s interest rate, and substantially increase the company’s financial flexibility,” said Grant Behrman, Managing Partner of Behrman Capital.
Pelican Products is a designer and manufacturer of both high-performance case solutions and advanced portable lighting systems. The company’s products are used by professionals in demanding markets including fire safety, law enforcement, defense & military, aerospace, entertainment, industrial and consumer. The company, headquartered in Torrance, CA, operates in 19 countries, with 27 offices and 6 manufacturing facilities across the globe (www.pelican.com).
Since acquiring Pelican in October 2004, Behrman Capital and management have together completed several add-on acquisitions for the company, including, most recently, Minnesota Thermal Science in 2013 and Cool Logistics in 2014.
“The highly successful syndication reflects the strong credit profile that we have created in partnership with CEO Lyndon Faulkner and the entire Pelican team. The company continues to build market share in its core products while diversifying its business, domestically and internationally, through a combination of organic growth and strategic acquisitions,” said Mr. Behrman.
This is the second recapitalization of Pelican completed by Behrman Capital. In December 2010 the firm completed a $435 million recapitalization comprised of a $405 million first-lien term loan and a $30 million revolving credit facility, which was unfunded at close. Credit Suisse served as lead arranger and bookrunner for the offering, with GE Capital serving as joint lead arranger and joint bookrunner. Proceeds from the credit facilities were used, in conjunction with cash-on-hand, to pay a cash dividend to Pelican’s shareholders and repay existing debt.
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-15-14
