American Industrial Partners to acquire Rand Logisitics
Rand Logistics, Inc., a leading provider of bulk freight shipping services throughout the Great Lakes Region, announced November 21 that American Industrial Partners (AIP) has agreed to acquire the company. AIP is a New York-based private equity firm with more than $4 billion of assets under management that focuses on buying, improving and growing industrial businesses in the U.S. and Canada.
Under the terms of the agreement entered into between Lightship Capital LLC, an affiliate of AIP, and Rand, AIP has agreed to convert all of the company’s second lien debt into 100 percent of the new common equity of the reorganized company (subject to dilution by shares to be issued under a management incentive plan). The transaction will materially delever the company’s balance sheet, eliminating approximately $90 million in outstanding debt and will dramatically reduce annual interest expense.
As a result of the AIP transaction, which will be effectuated through a prepackaged plan of reorganization, Rand will enjoy its strongest financial position in recent years. Rand’s business will continue uninterrupted pending completion of the transaction, the terms of which provide for payment in the ordinary course of all Company vendors and other unsecured creditors.
“We are pleased that we have reached an agreement, which will allow Rand to significantly reduce its debt burden and partner with a leading private equity firm,” said Edward Levy, President and Chief Executive Officer of Rand. “The transaction firmly addresses Rand’s recent balance sheet challenges and positions the Company for continued customer service and growth.”
“We are thrilled to partner with Rand and its leadership team to welcome a new beginning for a clear market leader in shipping and logistics on the Great Lakes,” said Jason Perri, a Partner of AIP. “Rand’s track record of reliability, safety and service in moving critical raw materials among world-class customers between ports on the Great Lakes speaks for itself.”