06.08.2020

TNT in debt/equity swap to avoid Chapter 11

US crane group TNT Holdings has agreed a restructuring support agreement with holders of 73 and 75 percent of its first and second lien secured loans, to recapitalise the business with a new $225 million term loan from its first lien lenders, in the form of a debt for equity exchange, which will be offered to all of its first and second lien lenders. The deal will only be consummated however if they all sign up to it. At the same time as the company is seeking approval for the deal, it will ask for concurrent approval for a pre-pack plan of reorganisation under chapter 11 bankruptcy rules, which would only go ahead if it failed to obtain 100 percent agreement for the debt for equity swap.

All those lenders that have already agreed to the debt for equity swap have also agreed to the pre-pack deal. The company has also secured commitments from some of the first lien lenders for $45 million debtor in possession financing, in to help fund the chapter 11 process if it ends up taking that route.

The company has said that the transaction will have no impact on day to day operations and TNT's executive team is expected to remain in place.

Chief executive Michael Appling added: "This restructuring is a positive outcome that will bolster TNT's financial strength and support our operations for the future. We are grateful to the lead members of our term loan group for working closely with us to prepare the consensual transaction and for the confidence demonstrated by their support. This consensual transaction will position TNT on firm financial footing with a healthier balance sheet. TNT will continue to operate seamlessly with an unwavering focus on safety and customer experience and no impact to our employees, customers and vendors. We are looking forward to working with the new ownership group to continue as North America's leader in providing safe, reliable lifting services as we grow alongside our customers."

TNT Crane & Rigging was established in 1985 in Houston, Texas with a single 18 ton crane. It grew steadily over the following years before being acquired by private equity firm Mezzanine Management(MML) in 2007 - see: TNT Crane & Rigging sold. Under MML ownership it began an acquisition spree that would last more than 10 years.

In 2008, it acquired Kuhn Crane Service of Corpus Christi, Texas and later in the year Link[https://vertikal.net/en/news/story/7247/tnt-takes-americrane(Americrane). link[https://vertikal.net/en/news/story/11718/tnt-continues-expansion](Louisiana based RTL, and Louisiana Crane’s San Antonio and Houston branches) were added in 2011, and MML sold .44 million worth of new shares to seven individual investors, including members of the management team. In November 2011 it sold the business to Odyssey Investment Partners. In 2012 TNT was back on the acquisition trail, acquiring the crane operations of Oklahoma based Turner Bros, followed by Southway Crane & Rigging of Macon, Georgia in 2013, along with TSD Crane & Rigging and Greenergy Construction & Maintenance, in Kansas, Canada and Texas. Towards the end of that year Odyssey sold the TNT business to First Reserve private equity.

With new owners on board TNT acquired Oklahoma based Rent-A-Crane, followed by Stampede Crane & Rigging, Eagle West Truck & Crane, Eagle West Precast and some assets of J&B Trucking, as part of a major expansion in Canada. In 2015 it acquired Denver, Colorado based Rocky Mountain Structures/RMS Cranes and finally in 2018 the company merged with Pennsylvania based Allison Crane & Rigging.

Today TNT runs a fleet of over 600 cranes up to 1,200 tonnes, from 38 branches across North America.