Radiant Logistics secures $75 million five-year senior secured revolver

By Tali Rackner

Minneapolis, June 14 – Radiant Logistics, Inc. secured a $75 million senior secured revolving cross-border credit facility on Wednesday with Bank of America, NA and Bank of Montreal, according to a press release.

The facility replaces the company’s $65 million credit facility and provides it with lower interest costs, less restrictive financial and operational covenants and includes a $50 million accordion feature to support future acquisition opportunities.

Borrowings bear interest at Libor plus 125 basis points. The spread over Libor ranges from 125 bps to 175 bps, depending on excess availability.

The facility carries a five-year term and is collateralized by accounts receivable and other assets of Radiant Logistics and its subsidiaries, and provides for advance rates of up to 85% of eligible domestic accounts receivable and, subject to certain sublimits, provides for advance rates of up to 75% of eligible accrued but unbilled receivables and eligible foreign accounts receivable.

For general borrowings, the company is subject to a single financial covenant that requires it to maintain a fixed-charge coverage ratio of 1 time if, and only if, net availability under the facility falls below $10 million.

Concurrently, the company secured a commitment for an additional C$10 million senior secured Canadian term loan from Integrated Private Debt Fund V LP that is expected to close in the next 15 days.

Proceeds will effectively replenish the company’s U.S. senior facility, which had been used as a bridge to finance its acquisition of Lomas Logistics earlier this year.

The loan will amortize monthly over a seven-year period and carries an interest rate of 6.65%.

Radiant is a Bellevue, Wash.-based non-asset-based transportation and logistics services company that provides domestic and international freight-forwarding services.

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