Mullen Group enters into C$125 million credit agreement with PNC

Chicago, Jan. 8 – Mullen Group Ltd. entered into a new C$125 million credit agreement with PNC Bank Canada Branch, according to a press release.

The new facility brings Mullen’s access to revolving credit facilities to C$375 million of borrowing capacity, including a C$100 million facility with Canadian Imperial Bank of Commerce and C$150 million with Royal Bank of Canada.

As of Dec. 31, there was C$73 million drawn on the CIBC and RBC facilities, down from C$114.2 million as of Sept. 30, 2023.

The credit facilities are available in, among other things, Canadian dollar loans, U.S. dollar loans and Canadian dollar banker's acceptances.

Interest is at the Canadian bank prime rate plus 50 basis points or the U.S. bank base rate plus 50 bps, payable monthly in arrears. Alternatively, interest is at the banker’s acceptance rates plus an acceptance fee of 150 bps payable upon acceptance.

The company’s subsidiary MT Investments Inc. is guaranteeing the facilities.

Proceeds will be used to provide additional liquidity and balance sheet flexibility. It also enables the company to pursue strategic acquisition opportunities.

Mullen is a trucking and logistics services company based in Okotoks, Alta.

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