GSE Holding will seek to issue at least $30 million of mezzanine debt

By Angela McDaniels

Tacoma, Wash., Aug. 2 - GSE Holding, Inc. will use its best efforts to raise at least $30 million of unsecured mezzanine debt or other subordinated capital by Oct. 31, according to an 8-K filing with the Securities and Exchange Commission.

The company agreed to raise the funds as part of a waiver received from the lenders of subsidiary GSE Environmental, Inc.'s U.S.-based senior secured credit facility.

The first $20 million of the mezzanine debt will be applied to pay down the credit facility.

If the company is not successful in raising the new debt, the margin on the credit facility will increase by 50 basis points each quarter after Oct. 31.

The lenders agreed to waive any default arising as a result of the credit parties' failure to be in compliance with the maximum total leverage ratio as of June 30 and to modify the maximum total leverage ratio.

GSE is a Houston-based plastics company.

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