Generac Holdings Inc. (GNRC: Quote) announced that it was adjusting its previously disclosed recapitalization plan in light of recent financing market conditions. The company has now determined that it will decrease the total size of its previously announced $1.2 billion financing and will not proceed with its private offering of unsecured notes.
The company instead expects to increase the amount of new senior secured debt to approximately $900 million. If incurred, the Company will use the proceeds of this new debt financing together with cash on its balance sheet to refinance its existing senior secured credit facility and to pay a special cash dividend of up to $6.00 per share on its common stock. The Company still expects to replace its current $150 million unfunded revolving credit facility with a similar sized asset-based revolving line.
Assuming that this financing is obtained, the company expects its Board of Directors to declare and the Company to pay the special dividend by or shortly after the end of the second quarter of 2012.
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by RTT Staff Writer
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