By Angela McDaniels
Tacoma, Wash., Dec. 12 - Radiant Logistics, Inc. priced $20 million of series A cumulative redeemable preferred stock, according to a company news release.
The deal has a $3 million greenshoe.
Sterne Agee & Leach, Inc. and Janney Montgomery Scott LLC are the joint bookrunning managers. Boenning & Scattergood, Inc. and National Securities Corp. are the co-managers.
The preferreds become callable in 2018 at par.
If the company misses two dividend payments, consecutive or not, the dividend will increase by 200 basis points, up to a maximum of 19%. Once the company has paid out two consecutive dividends, the rate will reset to the original amount.
The company expects to list the preferreds on the NYSE MKT Stock Market under the symbol "RLGTPRA."
Proceeds will be used to retire the outstanding balance owed under the senior subordinated notes issued to Caltius and to reduce the amount outstanding under a $30 million credit facility with Bank of America, NA.
Radiant is a Bellevue, Wash.-based non-asset-based transportation and logistics services company that provides domestic and international freight-forwarding services.
| Issuer: | Radiant Logistics, Inc.
|
| Issue: | Series A cumulative redeemable preferred stock
|
| Amount: | $20 million, or 800,000 shares
|
| Greenshoe: | $3 million, or 120,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Sterne Agee & Leach, Inc. and Janney Montgomery Scott LLC
|
| Co-managers: | Boenning & Scattergood, Inc. and National Securities Corp.
|
| Dividend: | 9.75%, payable quarterly
|
| Price: | $25
|
| Yield: | 9.75%
|
| Call option: | Beginning in 2018
|
| Pricing date: | Dec. 12
|
| Settlement date: | Dec. 20
|
| Expected listing: | NYSE MKT: RLGTPRA
|
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