ALJ Regional replaces term loan, amends revolver

Chicago, June 29 – ALJ Regional Holdings Inc. announced the replacement of its existing term and its existing revolver in a press release on Tuesday evening.

The new debt reduces term loan amortization principal payments by approximately $4.4 million, or 54%.

The new term loan also allows ALJ to pay interest on its convertible debt in cash, rather than in kind. This will help not dilute shareholder value.

Additionally, the average interest rate on the amended revolver was reduced by more than 50%, with the total available maintained at $32.5 million.

The company consolidated most existing capital leases and all equipment financing arrangements into the new term loan, for near-term cashflow improvement.

The financial covenants were reset to provide cushion based on projected results of operations.

The maturity date was extended to June 2025 from November 2023.

ALJ is a provider of business process outsourcing and co-sourced services to the healthcare, utility, toll and transportation industries, and a provider of multiple finishing products for the commercial, retail and homebuilder markets.

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