10:19 AM EDT, 04/11/2024 (MT Newswires) -- Dye & Durham Ltd. ( DYNDF ) said Thursday that it has completed its previously announced plans to refinance US$905 million ($1.24 billion).

The refinancing comprised a private offering of US$555 million of 8.625% senior secured notes due 2029 and a US$350 million aggregate principal amount senior secured term loan B facility. The company also has a $105 million revolving credit facility.

After giving effect to the refinancing transaction, Dye & Durham's ( DYNDF ) total net senior debt to further adjusted EBITDA for the last 12 months ending Dec. 31, 2023, will be 3.54 times. It noted estimated annualized net interest cost savings of near C$20 million.

Dye & Durham's ( DYNDF ) total net debt to further adjusted EBITDA for the last 12 months ending Dec. 31, 2023, which includes Dye & Durham's ( DYNDF ) 3.75% convertible senior unsecured debentures due 2026 and its 6.50% senior unsecured extendible convertible debentures due Nov. 1, 2028, will be 4.78 times.

This does not take into account the company's plan to use the proceeds of the refinancing transaction to buy any of the 2026 debentures.

Dye & Durham ( DYNDF ) will place $185 million of the proceeds in an escrow account, which will be held until the earlier of the repurchase of all of the outstanding 2026 debentures, or the maturity date of the 2026 debentures.

In connection with the refinancing transactions and concurrently with closing, the company repaid all amounts outstanding under its credit agreement dated as of Dec. 31, 2021, as amended. The company plans to use the remaining net proceeds of the offering of the new senior secured notes, together with the proceeds of the initial borrowings under the new senior secured credit facilities and cash on hand to buy back some or all of the 2026 debentures and fund working capital needs and for general corporate purposes.

The refinancing of the company's existing credit agreement addresses the risk that the existing credit agreement's maturity would have accelerated if any of Dye & Durham's ( DYNDF ) 2026 debentures remained outstanding as of Sept. 30, 2025.

Price: 15.73, Change: -0.19, Percent Change: -1.19