Trailer Bridge buys Kadampanattu Corp.
Jacksonville, Fla.-based Trailer Bridge Inc. has finalized the acquisition of the vessel leasing company Kadampanattu Corp.
The purchase was funded by borrowing through $85 million in aggregate principal amount of 9.25-percent senior secured notes.
The notes mature in 2011 and interest will be payable semi-annually on May 15 and Nov. 15 each year. The notes are secured by a first priority lien on two roll-on/roll-off vessels, 53-foot intermodal equipment and real estate.
The U.S. mainland/Puerto Rico operator utilized net proceeds of about $81.5 million to fund the purchase price for all of the outstanding stock of Kadampanattu Corp. and to pay back certain debts.
In addition, some of the proceeds were used to repay certain loans of Trailer Bridge, to acquire containers and chassis previously leased to the company and utilized in its operations and for working capital.
Kadampanattu Corp. had owned and leased to Trailer Bridge two triple-deck ro/ro barges for $7.3 million per year and held $24 million of Trailer Bridge preferred stock that has now been canceled.
