BELLEVUE, Wash., March 16, 2020 /PRNewswire/ -- Radiant
Logistics, Inc. (the "Company") (NYSE American: RLGT) today
announced that it has secured a new $150.0
million syndicated secured revolving credit facility (the
"Secured Facility") to replace its existing $75.0 million revolving facility. The Secured
Facility enhances the Company's financial flexibility, providing
increased capacity 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.
BofA Securities, Inc. acted as the sole book runner and sole
lead arranger for the syndicated credit facility. Bank of
Montreal acted as lender and
syndication agent. MUFG Union Bank, N.A. acted as lender and
documentation agent. Bank of America, N.A., Keybank National
Association and Washington Federal Bank, National Association also
acted as lenders. Bank of America, N.A. will also serve as
administrative agent.
Under the terms of the new Secured Facility, the Company may
borrow up to $150 million, subject to
compliance with customary and standard financial coverage covenants
and ratios. Included within the Secured facility is an accordion
feature for an additional $50 million
to support future acquisition opportunities. Borrowings under the
Secured Facility accrue interest at either the Lenders' base rate
plus 1.00% or LIBOR plus 2.00%, and can be subsequently adjusted
based on the Company's consolidated leverage ratio, at either the
Lenders' base rate plus 1.00% to 1.75% or LIBOR plus 2.00% to
2.75%.
The Secured Facility carries a five year term and is secured by
accounts receivable and other assets of the Company and its
subsidiaries. For general borrowings under the Secured Facility,
the Company is subject to a maximum consolidated leverage ratio of
3.00x and a minimum consolidated fixed charge coverage ratio of
1.25x. Additional minimum availability requirements and financial
covenants apply in the event the Company seeks to use advances
under the Secured Facility to pursue acquisitions or repurchase its
common stock. Under the terms of the Secured Facility, as of
December 31, 2019, the Company had a
consolidated leverage ratio of 1.0x and a consolidated fixed
charge coverage ratio of 3.6x.
Concurrent with entering into new Secured Facility, the Company
also amended the term loans held by its Canadian lender, Fiera
Private Debt Funds IV and V (formerly known as Integrated Private
Debt Funds IV and V), to make the financial and other covenants
therein consistent with those contained in the new Secured
Facility. In addition, the security interest securing such term
loans were made to be on a parity basis with those assets securing
the new Secured Facility.
"We are very pleased to announce our new $150 million senior facility and appreciate and
the strong support and confidence of our expanded banking group,"
said Bohn Crain, Founder and CEO of
the Company. "With this new facility, and the modifications to our
Canadian facility, we will be able to transition from a
facility that limited our borrowings to advances against our
accounts receivebles, to a more robust cash flow facility that will
allow us access to additional low-cost capital and greater
financial flexibility as we look to maximize long term shareholder
value 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. 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 buyback of our common stock."
Crain continued: "The COVID-19 virus is likely to continue to
create a lot of stress on supply chains and the financial markets
well into 2020. We are fortunate to have de-levered our business
with proceeds from an equity raise back in 2015, and unlike many of
our peers, we have continued to use our free cash flow to pay-down
debt and strengthen our balance sheet. As of December 31, 2019 our consolidated leverage ratio
was at a very conservative 1.0x. Our new facility gives us
the financial flexibility to successfully navigate these markets
while providing the financial stability to confidently support our
operating partners and the end customers that we serve. We
also believe that as customers consider the underlying financial
health of their current supply chain partners, Radiant may
represent an attrative alternative."
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 offerings, 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 Secured 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.