Lindblad Expeditions Holdings Raises $85 Million to Enhance Liquidity

Lindblad Expeditions Holdings has entered into an agreement with a group of investors—MSD Partners, L.P., Durable Capital L.P., Headlands Capital, Deep Field Asset Management LLC and Declaration Capital—for the private placement of $85 million of convertible preferred stock.

The company said in a statement that this will enhance Lindblad's financial flexibility, boosting cash reserves to support current operations and potential future growth, and that it also will support liquidity needs through 2021, even in the event of an extended COVID-19 shutdown. 

Protective Measures

“Since the global COVID-19 pandemic began, we have taken a variety of proactive measures to ensure that Lindblad is sufficiently capitalized to withstand this downturn and emerge in a position of strength,” said Sven-Olof Lindblad, Lindblad's president and CEO, in a press announcement. “I am happy to report that we have secured $85 million of additional capital from this outstanding, diversified group of experienced long-term investors.”

Lindblad continued, “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.”

Net proceeds from the investment will be used for general corporate purposes. On a pro forma basis, Lindblad’s liquidity position at June 30, 2020 would have been approximately $187 million when factoring in this $85 million investment. 

Terms of the Deal 

The investors have agreed to make an investment of $85 million in newly-issued convertible preferred stock that carries a 6 percent dividend, 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 percent to Lindblad’s 30-trading day volume-weighted average price.  On an as-converted basis, the preferred stock will represent approximately 15.5 percent 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.”  

About Lindblad Expeditions Holdings

Lindblad Expeditions Holdings, Inc. is an expedition travel company that focuses on ship-based voyages through its Lindblad Expeditions brand and on land-based travel through its subsidiary, Natural Habitat Adventures, an adventure travel and ecotourism company with a focus on responsible nature travel.

Lindblad Expeditions works in partnership with National Geographic to produce marine expedition programs and to promote global conservation and sustainable tourism. The partnership’s educationally oriented voyages allow guests to interact with and learn from scientists, naturalists and researchers, while guests view and explore eco-systems (both above and below the sea) through state-of-the-art exploration tools.

Natural Habitat partners with the World Wildlife Fund to offer and promote conservation and sustainable travel. Adventures include polar bear tours in Churchill, Canada, Alaskan grizzly bear adventures and African safaris.

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