This is part of the company's measures to ensure Lindblad is sufficiently capitalized to withstand the COVID-19 downturn and 'emerge in a position of strength,' according to Sven-Olof Lindblad, president and CEO. He described the group as 'experienced long-term investors.'
They have agreed to invest $85m in newly issued convertible preferred stock that carries a 6% dividend, payable in kind for two years and thereafter in cash or in kind at the company’s option. The preferred stock is convertible into shares of Lindblad stock at a conversion price of $9.50 per share, a premium of 23% to Lindblad’s 30-trading day volume-weighted average price.
When converted, 15.5% of shares outstanding
On an as-converted basis, the preferred stock will represent approximately 15.5% of the pro forma common shares outstanding.
'We were overwhelmed by the enthusiastic response to this offering and are thrilled to add such a high-quality set of value-add investors supporting the company,' Lindblad Chairman Mark Ein said. 'We believe this capital will not only secure our return to operations but, along with support from our committed investor base, will also position us to be offensive in pursuing opportunities to accelerate the growth of our platform coming out of the pandemic.'
'We have admired the company and its team for many years and are excited to partner with them at this time,' said Dan Bitar, a representative of MSD.
The net proceeds will be used for general corporate purposes. On a pro forma basis, Lindblad’s liquidity position at June 30 would have been approximately $187m when factoring in this $85m investment.
Lindblad was represented by Citigroup Global Markets as placement agent and Latham & Watkins as legal advisor.