Simpson Thacher is representing TNT Crane & Rigging (the “Company”) in a comprehensive restructuring that will be implemented through a debt-for-equity exchange or, if the Company is unable achieve 100% support for the exchange, a prepackaged plan of reorganization.
TNT executed a restructuring support agreement on August 3, 2020 with a majority of its first lien and second lien lenders. Through the transaction, TNT’s first lien lenders will receive $100 million in exit term loans and 97% of equity in the reorganized company, and its second lien lenders will receive the remaining equity and warrants that may be exercised for up to 6% of equity in the reorganized company if the out-of-court transaction is consummated, or up to 5% of equity in the reorganized company if the transaction is effectuated through the prepackaged plan. Additionally, the Company’s equity sponsor, First Reserve, will receive warrants that may be exercised for up to 1% of equity in the reorganized company.
In addition, the first lien lenders have committed to provide a $225 million term loan upon the closing of the transaction and a $45 million debtor-in-possession financing if the transaction is implemented through the prepackaged plan. TNT expects to close the transaction in the third quarter of 2020.
TNT is a crane services platform that provides operated and maintained (“O&M”) crane services and comprehensive lifting services to a broad customer base across multiple sites, with a diversified end market exposure. As a provider of O&M services, the company supplies its customers with highly skilled operators, technical expertise and project engineering and design in connection with its lifting services.
The Simpson Thacher team includes Elisha Graff, Kathrine McLendon, David Zylberberg, Cristina Liebolt, Ben Carson, Ashley Gherlone and Silvia Peng (Restructuring); Alden Millard, Michael Vernace and Dorothy Hector (Credit); Nancy Mehlman, Tyler Robbins and Edward Grais (Tax); Christopher May, Jacqui Bogucki and Zain Rifat (M&A); Brian Rosenzweig and Brian Mathes (Capital Markets); Genevieve Dorment and Loren Shokes (Intellectual Property); Larry Moss and Monisha Bhayana (ECEB); and Bryce Friedman (Litigation).