Lindblad Expeditions Holdings, Inc. reported that it had entered into an agreement with a group of investors including MSD Partners, Durable Capital L.P., L.P., Deep Field Asset Management LLC, Headlands Capital, and Declaration Capital, for a private placement of US$85 million of convertible preferred stock.
"Since the global COVID-19 pandemic began, we have taken a variety of proactive measures to ensure that Lindblad is sufficiently capitalized to withstand this downturn and emerge in a position of strength," commented President and Chief Executive Officer Sven-Olof Lindblad.
"I am happy to report that we have secured $85 million of additional capital from this outstanding, diversified group of experienced long-term investors."
The investment provides the cruise company with additional financial flexibility as they prepared “to return to exploring the world's most remarkable destinations."
The Investors agreed to make an investment of US$85 million in newly-issued convertible preferred stock carrying a 6.0% dividend, payable in kind for two years and thereafter in cash or in-kind at Lindblad's option. The preferred stock is convertible into shares of Lindblad common stock at a conversion price of US$9.50 per share, representing a premium of 23% to the company's 30-trading day volume-weighted average price. On an as-converted basis, the preferred stock is due to represent around 15.5% of the proforma common shares outstanding.
According to Mark Ein, Lindblad's Chairman of the Board, they had been “overwhelmed by the enthusiastic response to this offering” and were thrilled to add “such a high- quality set of value-add investors supporting the company.”
"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."
The net proceeds from the new investment are to be used for general corporate purposes.