By Sarah Lizee
Olympia, Wash., Aug. 5 – Viad Corp. issued $135 million of 5.5% series A perpetual convertible preferred stock in a private placement to Crestview IV VC TE Holdings, LLC, Crestview IV VC Holdings, LP and Crestview IV VC CI Holdings, LP on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.
The coupon is payable in cash or in kind at the company’s option.
The preferred stock is convertible into shares of Viad common stock at a conversion price of $21.25 per share, representing a premium of 42% to Viad's 10 trading day volume weighted average price.
The agreement also includes a delayed draw commitment of up to $45 million that Viad may access during the next 12 months at the same terms as the initial investment.
Proceeds will be used to repay a portion of the company’s revolver borrowings, provide additional short-term liquidity, fund capital expenditures, and support general corporate purposes.
Moelis & Company LLC is the placement agent.
Viad is a Phoenix-based company that provides services for exhibition organizers as well as travel and recreation services.
| Issuer: | Viad Corp.
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| Issue: | Series A convertible preferred stock
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| Amount: | $135 million
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| Maturity: | Perpetual
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| Coupon: | 5.5%
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| Conversion price: | $21.25 per share
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| Investors: | Crestview IV VC TE Holdings, LLC, Crestview IV VC Holdings, LP and Crestview IV VC CI Holdings, LP
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| Placement agent: | Moelis & Company LLC
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| Placement date: | Aug. 5
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| Distribution: | Private placement
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