Rand Logistics to be acquired by American Industrial Partners
Rand Logistics announced that American Industrial Partners has agreed to acquire the company. AIP is a New York-based private equity firm with over $4B of assets under management that focuses on buying, improving and growing industrial businesses in the U.S. and Canada. Under the terms of the agreement entered into between Lightship Capital LLC, an affiliate of AIP, and the company, AIP has agreed to convert all of the company's second lien debt into 100% of the new common equity of the reorganized company. The transaction will materially de-lever the company's balance sheet, eliminating approximately $90M in outstanding debt and will also dramatically reduce annual interest expense. As a result of the AIP transaction, which will be effectuated through a pre-packaged plan of reorganization, Rand will enjoy its strongest financial position in recent years. Rand's business will continue uninterrupted pending completion of the transaction, the terms of which provide for payment in the ordinary course of all company vendors and other unsecured creditors.