Orion Group Holdings, Inc. (NYSE: ORN) (the "Company"), a leading
specialty construction company, today announced the closing of a
new 3-year $103 million senior secured asset based credit facility
with White Oak ABL, LLC and White Oak Commercial Finance, LLC,
which are the asset based lending affiliates of White Oak Global
Advisors, LLC, (collectively, “White Oak”). This credit facility
has replaced the Company’s $42.5 million revolver with Regions Bank
and other lenders. At the same time, the Company entered into a $13
million sale-leaseback of certain concrete segment equipment with
Gordon Brothers (the “Sale-Leaseback”).
The new credit facility includes a $65 million asset based
revolving credit facility (the “Revolver”) and a $38 million fixed
asset term loan (the “Term Loan”). The Revolver will initially bear
interest at a rate of the 30-day SOFR plus 5.5% and the Term Loan
at a rate of the 30-day SOFR plus 8.0%, subject to a SOFR floor of
4.0%. At closing, the Company made an initial Revolver draw of $9.5
million. Borrowings from the facility will primarily be used to
refinance existing debt as well as for other general corporate and
working capital purposes. The Sale-Leaseback includes equipment on
lease schedules of 24-months and 36-months.
“This new credit facility and $13 million Sale-Leaseback provide
increased financial flexibility and additional capital to take
advantage of our growth opportunities. We are now well positioned
to execute our strategic plan and deliver improved financial
results to our stakeholders,” said Travis Boone, Orion’s President
and Chief Executive Officer. “White Oak has been a collaborative
partner and we appreciate their support and strong vote of
confidence.”
Tom Otte, Head of White Oak ABL, LLC added, “We are very
impressed with Orion’s new management and their strategy to unlock
the embedded value of the company. Orion’s recent major wins like
the Pearl Harbor project for the Navy strengthened our conviction
that White Oak is the right financing partner to help Orion fulfill
its growth potential.”
About Orion Group Holdings
Orion Group Holdings, Inc., a leading specialty construction
company serving the infrastructure, industrial and building
sectors, provides services both on and off the water in the
continental United States, Alaska, Hawaii, Canada and the Caribbean
Basin through its marine segment and its concrete segment. The
Company’s marine segment provides construction and dredging
services relating to marine transportation facility construction,
marine pipeline construction, marine environmental structures,
dredging of waterways, channels and ports, environmental dredging,
design, and specialty services. Its concrete segment provides
turnkey concrete construction services including place and finish,
site prep, layout, forming, and rebar placement for large
commercial, structural and other associated business areas. The
Company is headquartered in Houston, Texas with regional offices
throughout its operating areas.
https://www.oriongroupholdingsinc.com.
About White Oak Global
Advisors
White Oak Global Advisors, LLC (“WOGA”) is a leading alternative
debt manager specializing in originating and providing financing
solutions to support small and middle market enterprises at every
stage of their lifecycle. WOGA and its financing affiliates
optimize capital structure based on available assets and cash flow
and provide over twenty lending products to the market that include
term, asset-based, and equipment loans. Since its inception in
2007, WOGA and its affiliates have deployed over $10 billion across
its product lines, utilizing a hands-on, disciplined investment
process that focuses on delivering risk-adjusted investment returns
to investors, while establishing long-term partnerships with its
borrowers. More information can be found at www.whiteoaksf.com.
About White Oak Commercial Finance
White Oak Commercial Finance, LLC (WOCF) is a global financial
products and services company providing credit facilities to
companies across the economy. WOCF’s solutions include asset-based
lending, full-service factoring, invoice discounting, government
contract financing, lender financing, supply chain financing,
inventory financing, US import/export financing, trade credit risk
management, account receivables management and credit and
collections support. The firm has offices and personnel throughout
the US, UK, and Australia, including San Francisco, Charlotte,
Washington D.C., Atlanta, Los Angeles, London, Glasgow, and Sydney.
WOCF is an affiliate of White Oak Global Advisors, LLC and its
institutional clients. More information can be found at
www.whiteoaksf.com/commercialfinance.
Forward-Looking Statements
The matters discussed in this press release may constitute or
include projections or other forward-looking statements within the
meaning of the “safe harbor” provisions of Section 27A of the
Securities Exchange Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, of which provisions
the Company is availing itself. Certain forward-looking statements
can be identified by the use of forward-looking terminology, such
as 'believes', 'expects', 'may', 'will', 'could', 'should',
'seeks', 'approximately', 'intends', 'plans', 'estimates', or
'anticipates', or the negative thereof or other comparable
terminology, or by discussions of strategy, plans, objectives,
intentions, estimates, forecasts, outlook, assumptions, or goals.
In particular, statements regarding future operations or results,
including those set forth in this press release, and any other
statement, express or implied, concerning future operating results
or the future generation of or ability to generate revenues,
income, net income, gross profit, EBITDA, Adjusted EBITDA, Adjusted
EBITDA margin, or cash flow, including to service debt, and
including any estimates, forecasts or assumptions regarding future
revenues or revenue growth, and our ability to negotiate and obtain
the refinancing of our credit facility, the terms, restrictions,
and covenants of our refinancing, and the timing of such
refinancing, are forward-looking statements. Forward-looking
statements also include project award announcements, estimated
project start dates, anticipated revenues, and contract options
which may or may not be awarded in the future. Forward-looking
statements involve risks, including those associated with the
Company's fixed price contracts that impacts profits, unforeseen
productivity delays that may alter the final profitability of the
contract, cancellation of the contract by the customer for
unforeseen reasons, delays or decreases in funding by the customer,
levels and predictability of government funding or other
governmental budgetary constraints, the effects of the ongoing
COVID-19 pandemic, and any potential contract options which may or
may not be awarded in the future, and are at the sole discretion of
award by the customer. Past performance is not necessarily an
indicator of future results. In light of these and other
uncertainties, the inclusion of forward-looking statements in this
press release should not be regarded as a representation by the
Company that the Company's plans, estimates, forecasts, goals,
intentions, or objectives will be achieved or realized. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. The Company
assumes no obligation to update information contained in this press
release whether as a result of new developments or otherwise,
except as required by law.
Please refer to the Company's 2022 Annual Report on Form 10-K,
filed on March 16, 2023, which is available on its website at
www.oriongroupholdingsinc.com or at the SEC's website at
www.sec.gov, for additional and more detailed discussion of risk
factors that could cause actual results to differ materially from
our current expectations, estimates or forecasts.
Contacts:Financial Profiles, Inc.Margaret Boyce
310-622-8247Donni Case 310-622-8224ORN@finprofiles.com
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