Under the terms of the new Secured Facility, the Company may borrow up to
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
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
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
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
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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