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 Post subject: Re: Rand Logistics
Unread postPosted: November 27, 2017, 11:03 am 
What do members of this board think it means to control the company in exchange for paying the lien?

AIP is a private equity firm specializing in industrial-sector management. AIP is not putting up the capital to pay the lien as an act of charity nor is it hoping to keep 1950s era steamers plying the Great Lakes. AIP now owns 100% of Rand's common stock. That means control over Rand's C-suite. Control over the C-suite means new management, either in person or in policy.

And AIP seems like a natural fit: they specialize in managing industrial-sector assets. That new management certainly could conduct a fire sale and take Rand out of the industry altogether. But a fire sale or merger seems unlikely given the size of this deal and the way private equity works. The firm likely wants to see an appreciable return on investment over a period of time. Dismantling the company and selling off everything is unlikely to make back the $90.

Because Rand is a public company, we should eventually get a look at some of the financials and determine what AIP thinks are the short and long term growth potentials for Rand. I'm assuming they think, even in a mature market like GL shipping, there is a sustainable profit opportunity. Or AIP realizes that GL shipping keeps other industrial sector companies profitable by containing supply-chain costs. So a healthy GL Shipping market with competition is an asset to their holdings in steel, auto, construction, pipeline or consumer durable companies. Again, neither scenario points to an erosion of Rand's presence in the shipping industry.

The immediate upshot is that Rand now has money to spend on acquiring new assets or repairing existing ones. Rather than hold money to pay interest or principal on debts, Rand can repair existing assets like the Manistee, or the Canadian side might be able to raise the capital to purchase new builds from Canada.


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 Post subject: Re: Rand Logistics
Unread postPosted: November 27, 2017, 9:50 am 
This does look like a potentially positive outcome for Rand. What are the factors that brought Rand to this poor financial position ? Have they or will they be addressed in order to prevent history repeating itself ? There's been a lot of talk on this board about poor management and that much of the knowledgeable management has left the company.


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 Post subject: Re: Rand Logistics
Unread postPosted: November 26, 2017, 10:08 pm 
clarkjol wrote:
"Guest", what are you referring to, when you state "Buyer Beware"? I don't understand that. API has done their due diligence and they want to take over Rand Logistics by paying off $90M of debt. Where does "Buyer Beware" fit? They are buying Rand Logistics, so that by the start of the 2018 shipping season, they will have a pretty good handle on what to expect for the season and enter it with customers knowing that Rand Logistics will be in business. Employees the same, they need assurance that Rand will be in business or they will walk and work somewhere else if matters are not settled by 2018. This is a good time of the year for API to buy Rand. Could Rand Logistics with the financial problems they have hope to survive the winter and service the customers when the shipping season starts? Pretty shaky, customers not confident as well as employees. Gotta have both to have a going concern. Another "Guest" states "does one buy at this time or just watch for something to implode?" What is that supposed to mean, BUY? Buy what? There is nothing to buy API did the buying. IMPLODE? Implode what? There is nothing to implode, nobody buys anything for $90M just to have it blow up in their face. Get Rand Logistics, ie. LLT & GRN in good financial shape and Rand can still be a big factor and a player in Great Lake shipping.



They are tying to tell you they do not think this was a wise move for AIP. I have to say I agree.


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 Post subject: Re: Rand Logistics
Unread postPosted: November 25, 2017, 11:41 pm 
"Guest", what are you referring to, when you state "Buyer Beware"?? I don't understand that. API has done their due diligence and they want to take over Rand Logistics by paying off $90M of debt. Where does "Buyer Beware" fit? They are buying Rand Logistics, so that by the start of the 2018 shipping season, they will have a pretty good handle on what to expect for the season and enter it with customers knowing that Rand Logistics will be in business. Employees the same, they need assurance that Rand will be in business or they will walk and work somewhere else if matters are not settled by 2018. This is a good time of the year for API to buy Rand. Could Rand Logistics with the financial problems they have hope to survive the winter and service the customers when the shipping season starts? Pretty shaky, customers not confident as well as employees. Gotta have both to have a going concern. Another "Guest" states "does one buy at this time or just watch for something to implode?" What is that supposed to mean, BUY? Buy what? There is nothing to buy API did the buying. IMPLODE? Implode what? There is nothing to implode, nobody buys anything for $90M just to have it blow up in their face. Get Rand Logistics, ie. LLT & GRN in good financial shape and Rand can still be a big factor and a player in Great Lake shipping.


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 Post subject: Re: Rand Logistics
Unread postPosted: November 25, 2017, 9:17 pm 
With respect to the news surrounding rand logistics, we all know people , there is only two prevalent emotions in the financial sector, that being FEAR and GREED, again let the buyer (s) beware.


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 Post subject: Re: Rand Logistics
Unread postPosted: November 25, 2017, 11:56 am 
I'm not an MBA, but astute management makes changes between six months to a year after they come in and really assess what they just bought..


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 Post subject: Re: Rand Logistics
Unread postPosted: November 25, 2017, 11:45 am 
So...does one buy at this time or just watch for something to implode?


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 Post subject: Re: Rand Logistics
Unread postPosted: November 25, 2017, 1:36 am 
Why would AIP invest that kind of money and not require new management at Rand?


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 Post subject: Re: Rand Logistics
Unread postPosted: November 24, 2017, 10:29 pm 
One can only shout out "caveat" in this situation, in other words one should not buy themselves a Bill of goods.
As stated only time will tell, folks.


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 Post subject: Re: Rand Logistics
Unread postPosted: November 24, 2017, 2:40 am 
American Industrial Partners is not a hedge fund, "Guest" if that is your worry. What choice did they have? In the last quarterly earnings release, there was concern about Rand/LLT being a "going concern in the future". That, is a negative statement, just ahead of a bankruptcy statement. AIP is a equity based company that has been in business since 1989. AIP assisted a company that is well known, Target Department Stores (Dayton Hudson) with their Initial Public Offering. There is a lot of upside to this transaction for Rand/LLT and as usual; time will tell.


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 Post subject: Re: Rand Logistics
Unread postPosted: November 24, 2017, 12:26 am 
It all sounds good, but what are the chances it is all smoke and mirrors? Acquire, relieve debt (with phony paper pencil whip), break up company, and sell or scrap assets for a profit. Just a thought.


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 Post subject: Re: Rand Logistics
Unread postPosted: November 23, 2017, 10:48 pm 
That's a pretty fair view of the current situation


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 Post subject: Re: Rand Logistics
Unread postPosted: November 23, 2017, 6:15 pm 
Sounds like, essentially, the buyers get control of the company by paying off this lienholder. The hope is that by not having this (probably crippling) debt service the company should be able to "get ahead", in which case the equity firm can hopefully turn around in a few years and sell it whole for a profit.


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 Post subject: Re: Rand Logistics
Unread postPosted: November 22, 2017, 5:46 pm 
LakerMatt wrote:
Sounds like good news for the company and the employees.
Making every effort to keep the ships, and keep them working.
http://www.nasdaq.com/press-release/ame . 1121-01339


I agree. It sounds positive to keep the company going. Can anyone explain, in layman's terms, how this deal works ?


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 Post subject: Re: Rand Logistics
Unread postPosted: November 22, 2017, 2:58 pm 
garbear wrote:
Noticed on Facebook this a.m. that Roger KYS has posted an article that Rand Logistics has been sold.



https://globenewswire.com/news-release/ . s-Inc.html


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