BELLEVUE, Wash., June 14, 2017 /PRNewswire/ -- Radiant
Logistics, Inc. (the "Company") (NYSE MKT: RLGT) today announced
that it has secured a new US$75.0
million senior secured revolving cross-border credit
facility (the "Senior Facility") with Bank of America, N.A. and
Bank of Montreal (the "Lenders").
The Senior Facility replaces the Company's US$65.0 million credit facility and provides it
with lower interest costs, less restrictive financial and
operational covenants, and includes a $50.0
million accordion feature to support future acquisition
opportunities. Advances under the Senior Facility are available to
fund future acquisitions, capital expenditures or for other
corporate purposes, including, if warranted at the time, the
repurchase of the Company's common stock and/or $21.0 million redeemable perpetual preferred
stock which is callable by the Company, at its option, starting in
December of 2018.
Under the terms of the new Senior Facility, borrowings accrue
interest at the Company's option, at the Lenders' base rate plus
0.25% or LIBOR plus 1.25%, and can be subsequently adjusted based
on the Company's excess availability under the facility at the
Lenders' base rate plus 0.25% to 0.75% or LIBOR plus 1.25% to
1.75%.
The Senior Facility carries a five year term and is
collateralized by accounts receivable and other assets of the
Company and its subsidiaries, and provides for advance rates of up
to 85% of eligible domestic accounts receivable and, subject to
certain sub-limits, provides for advance rates of up to 75% of
eligible accrued but unbilled receivables and eligible foreign
accounts receivable. For general borrowings under the Senior
Facility, the Company is subject to a single financial covenant
which requires it to maintain a fixed charge coverage ratio of 1.0
to 1.0 if, and only if, net availability under the Senior Facility
falls below $10.0 million. Additional
minimum availability requirements and financial covenants apply in
the event the Company seeks to use advances under the Senior
Facility to pursue acquisitions or repurchase its common stock
and/or $21.0 million redeemable
perpetual preferred stock. Under the terms of the Senior Facility,
as of April 30, 2017, the Company had
gross availability of approximately $58.9
million, advances of $13.4
million, stand-by letters of credit of $0.4 million and net availability of
approximately $45.1 million.
Concurrent with new Senior Facility, the Company also secured a
commitment for an additional CAD$10.0
million senior secured Canadian term loan from Integrated
Private Debt Fund V LP (the "IPD V Term Loan") that is expected to
close in the next 15 days. The proceeds from the IPD V Term
Loan will effectively replenish the Company's U.S. Senior Facility
which had been used as a bridge to finance its acquisition of Lomas
Logistics earlier this year. The IPD V Term Loan will amortize
monthly over a seven year period and carries an interest rate of
6.65%.
"We are very pleased to announce our new US$75.0 million senior facility with Bank of
America and BMO," said Bohn Crain,
Founder and CEO of the Company. "The new Senior Facility provides
us access to additional low-cost capital and greater financial
flexibility as we look to maximize long term shareholder value by
remaining focused on delivering profitable growth through a
combination of organic growth and strategic acquisitions intended
to bring value to our strategic operating partners, shareholders
and the end customers that we serve. Most recently, we have been
delivering double digit organic growth in our Adjusted EBITDA,
making focused technology investments in our SAP operating
platform, completing green-field tuck-in acquisitions (Lomas
Logistics - April 2017) and converting agent station to
company-owned stores (Dedicated Logistics Technologies - June
2017). In addition, with the benefit of our new financing
arrangements, we enjoy additional capacity to continue to execute
on additional compelling acquisition opportunities while also
preserving our ability to pursue other initiatives to unlock
shareholder value, including opportunities to call our redeemable
perpetual preferred stock and/or execute a buyback of our common
stock, if either are warranted at the time."
About Radiant Logistics, Inc.
Radiant Logistics, Inc. (www.radiantdelivers.com) is a
third-party logistics and multimodal transportation services
company delivering advanced supply chain solutions through a
network of company-owned and strategic operating partner locations
across North America. Through its
comprehensive service offering, the Company provides domestic and
international freight forwarding services, truck and rail brokerage
services and other value-added supply chain management services,
including customs brokerage, order fulfillment, inventory
management and warehousing to a diversified account base including
manufacturers, distributors and retailers using a network of
independent carriers and international agents positioned
strategically around the world.
This announcement contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Actual
results may differ significantly from management's expectations.
These forward-looking statements involve risks and uncertainties
that include, among others, risks related to: trends in the
domestic and global economy; our ability to attract new and retain
existing agency relationships; acquisitions and integration of
acquired entities; availability of capital to support our
acquisition strategy; our ability to comply with financial
covenants under our outstanding indebtedness; our ability to
maintain and improve back office infrastructure and transportation
and accounting information systems in a manner sufficient to
service our revenues and network of operating locations; our
ability to maintain and grow our revenues and operating margins in
a manner consistent with recent operating results and trends; our
ability to maintain positive relationships with our third-party
transportation providers, suppliers and customers; outcomes of
legal proceedings; competition; management of growth; potential
fluctuations in operating results; and government regulation. More
information about factors that potentially could affect our
financial results is included Radiant Logistics, Inc.'s filings
with the Securities and Exchange Commission, including its most
recent Annual Report on Form 10-K and subsequent filings.
The use of proceeds under the Senior Facility described above
reflect possible uses and are not guarantees of how the proceeds
will be used, if at all. Any use of proceeds by the Company will be
subject to, among other things, then applicable: industry
conditions, competitive environment, operational performance,
financial covenants within any outstanding indebtedness,
contractual restrictions, and regulatory requirements.
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SOURCE Radiant Logistics, Inc.