RENTON, Wash., August 8, 2022 /PRNewswire/ — Radiant Logistics, Inc. (the “Company”) (NYSE American: RLGT) today announced that it has obtained a new $200.0 million syndicated secured revolving credit facility (the “Secure Facility”) to replace its $150.0 million rotating facility. The Secured Facility enhances the Company’s financial flexibility, providing increased capacity to fund future acquisitions, capital expenditures or other corporate purposes, including, if warranted at the time, buyout ordinary shares of the company.
BofA Securities, Inc. acted as joint bookrunner and lead arranger for the syndicated credit facility. Bank of Montreal acted as lender, co-lead arranger and syndication agent. MUFG Union Bank, NA acted as lender and co-documentation agent. Keybank National Association acted as lender and co-documentation agent. Bank of America, NA, and Washington Federal Bank, National Association also acted as lenders. Bank of America, NA will also serve as administrative agent.
Under the new secured facility, the Company can borrow up to $200 million, subject to compliance with the usual financial hedging ratios and covenants. Included in the secure installation is an accordion feature for an additional charge $75 million to support future acquisition opportunities. Borrowings under the Secured Facility bear interest at either the lenders’ base rate plus 0.50% or SOFR plus 1.40%, and may then be adjusted based on the Company’s consolidated net leverage ratio, either at the lenders’ base rate plus 0.50% to 1.50% or SOFR plus 1.40% to 2.40%.
The secured facility has a term of five years and is secured by the 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 net leverage ratio of 3.0x and a minimum consolidated interest coverage ratio of 1.0x. Minimum availability requirements and additional financial covenants apply in the event that the Company seeks to use advances under the secured facility to pursue acquisitions or repurchase its common stock. Under the Secured Facility, from March 31, 2022the Company had a consolidated net leverage ratio of 1.0x and a consolidated interest coverage ratio of 24.4x.
Concurrent with entering into a 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 to make financial and other commitments with those contained in the new secure facility. The collateral securing these term loans remains at par with the assets securing the new secured facility.
“We are very pleased to announce our new $200 million Secured Facility and appreciate the strong support and confidence of our banking group,” said Bohn Crain, Founder and CEO of the Company. “The new secured facility gives us access to additional capital at low cost and greater financial flexibility as we seek to maximize long-term shareholder value through a combination of organic growth and strategic acquisitions as well as repurchase opportunities for our common stock.”
Crain continued, “We remain encouraged by our continued strong financial performance and the fact that we have now announced a record $69.5 million in adjusted EBITDA on $1.3 billion turnover for the last twelve months ended March 31, 2022. It should also be noted that we achieved these results while maintaining very low leverage on our balance sheet and we believe we are very well positioned with easy access to capital to begin our push towards the next $1 billion milestone. . »
About Radiant Logistics, Inc.
Radiant Logistics, Inc. (www.radiantdelivers.com) is a third-party, multimodal transportation and logistics services company that provides advanced supply chain solutions through a network of company-owned locations and strategic operating partners in through North America. Through its comprehensive service offerings, the Company provides domestic and international freight forwarding services, road and rail brokerage services and other value-added supply chain management services, including brokerage customs, order fulfillment, inventory management and warehousing to a diverse customer base including manufacturers, distributors and retailers using a network of independent carriers and international agents strategically positioned 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 materially from management’s expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks relating to: trends in the national and global economy; our ability to attract new agency relationships and retain existing agency relationships; acquisitions and integration of acquired entities; the availability of capital to support our acquisition strategy; our ability to meet financial covenants under our outstanding indebtedness; our ability to maintain and improve back office infrastructure and transportation and accounting information systems sufficient to service our revenues and network of operating sites; 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; the results of legal proceedings; competition; growth management; potential fluctuations in operating results; and government regulations. More information about factors that could affect our financial results is included in Radiant Logistics, Inc.’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and filings filed later.
Use of the Product under the Guaranteed Facility described above reflects possible uses and does not constitute a guarantee of how the Product will be used, if at all. Any use of proceeds by the Company will be subject to, among other things, applicable conditions: industry conditions, competitive environment, operational performance, financial covenants under any outstanding debt, contractual restrictions and regulatory requirements.
SOURCE Radiant Logistics, Inc.