This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Generac Completes Refinancing Of Senior Secured Credit Facility; Declares Special Cash Dividend Of $6.00 Per Share

Stocks in this article: GNRC

Generac Holdings Inc. (NYSE: GNRC)(the “Company”), a leading designer and manufacturer of generators and other engine powered products, announced today that it has completed the previously disclosed amendment and restatement of its existing senior secured credit facilities, pursuant to which it has incurred $900 million of senior secured term loans to replace its existing $575 million term loan facilities. Additionally, the Company has obtained a separate $150 million asset-based revolving credit facility to replace its existing $150 million unfunded revolving credit facility. The new term loans will mature in 2018, with interest accruing at LIBOR plus 5.0% with a LIBOR floor of 1.25%. The new revolving credit facility will terminate in 2017 and interest will accrue on drawn proceeds using an availability-based pricing grid starting at LIBOR plus 2.0%. As previously announced, the Company intends to use the remaining proceeds from the new term loans and cash on hand to fund a special cash dividend to its stockholders of $6.00 per share, or approximately $408 million in the aggregate, and to pay related financing fees and expenses.

Following the closing of the new senior secured credit facility and related borrowings thereunder, the Company’s Board of Directors yesterday declared the special cash dividend of $6.00 per share. The special cash dividend is payable to stockholders of record on June 20, 2012 and will be paid on June 29, 2012. We have been informed by the New York Stock Exchange that the ex-dividend date is expected to be July 2, 2012, in accordance with its rules. Shareholders of record on the record date who sell their shares on or before the payment date will not receive the special cash dividend.

As a result of the closing on the $900 million of senior secured term loans, the Company is updating its guidance for interest expense for the full-year 2012. Interest expense is now expected to be in the range of $49.0 to $50.0 million, which includes $45.0 to $46.0 million of debt service costs, at current LIBOR rates, plus approximately $4.0 million for deferred financing cost and original issue discount amortization for the new credit facility. Interest expense during the third quarter of 2012, the first full quarter under the new capital structure, is expected to be approximately $17.2 million, which includes approximately $1.4 million of deferred financing costs and original issue discount amortization.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,815.41 +0.47 0.00%
S&P 500 2,070.21 +3.18 0.15%
NASDAQ 4,777.8810 +19.6290 0.41%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs