Lindblad Expeditions Holdings has entered into an agreement with a group of investors for the private placement of $85 mill of convertible preferred stock.
The investors include MSD Partners, Durable Capital, Headlands Capital, Deep Field Asset Management and Declaration Capital,
“Since the global COVID-19 pandemic began, we have taken a variety of proactive measures to ensure that Lindblad is sufficiently capitalised to withstand this downturn and emerge in a position of strength,” explained Sven-Olof Lindblad, President and CEO. “I am happy to report that we have secured $85 mill of additional capital from this outstanding, diversified group of experienced long-term investors.
“We know our guests are eager to travel again and this investment provides us with additional financial flexibility, as we prepare to return to exploring the world’s most remarkable destinations,” he said.
The investors have agreed to make the investment in newly-issued convertible preferred stock that carries a 6% dividend, which is payable in kind for two years and thereafter in cash or in-kind at the company’s option.
The preferred stock is convertible into shares of Lindblad common stock at a conversion price of $9.50 per share, representing a premium of 23% to Lindblad’s 30-trading day volume-weighted average price.
On an as-converted basis, the preferred stock will represent about 15.5% of the pro-forma common shares outstanding.
“We were overwhelmed by the enthusiastic response to this offering and are thrilled to add such a high- quality set of value-add investors supporting the company,” said Mark Ein, Lindblad’s Chairman. “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.”
“Lindblad Expeditions is a world-class franchise with a unique offering of expedition travel experiences. We have admired the company and its team for many years and are excited to partner with them at this time,” said Dan Bitar, an MSD representative.
The net proceeds from the investment will be used for general corporate purposes.
On a pro-forma basis, Lindblad’s liquidity position as at 30th June, 2020 would have been around $187 mill when factoring in the extra $85 mill.
Lindblad Expeditions has also appointed Gina Gabbard to serve as Chief Sales Officer.
In this newly created position, Gabbard will oversee and direct the company’s strategic sales growth with a focus on the retail travel sector and group sales.