Daily News: March 5, 2014

BMO Financial Leads Wheels Group Facility

Wheels Group announced that it entered into a new credit agreement with its syndicate of lenders, including the Bank of Montreal as lead, and HSBC Bank Canada.

The new three-year credit agreement includes a $15 million operating line and refinances approximately $19.3 million in existing term debt that includes refinancing $7 million of 8% term debt. The new term debt facility is non-revolving and is amortized over seven years with quarterly principal repayments.

The agreement includes an acquisition facility of up to $5 million to support Wheels’ strategic growth plans. It provides for an additional $7.5 million in term debt, subject to lenders review and approval, to support the redemption of the company’s outstanding Class 1A Preference Shares, due on December 31, 2014. The new facility is secured by the assets of the company and matures on February 12, 2017.

“We are pleased to continue our relationship with BMO and welcome HSBC to our syndicate of lenders.” said Ted Irwin, CFO of Wheels. “This enhanced credit facility provides lower debt service costs, reduced principal repayments and greater flexibility, further strengthening Wheels’ financial position as we execute our strategy of combining strategic profitable acquisitions with consistent organic growth.”

Wheels is a North American 3PL, supply chain logistics provider serving the U.S. and Canada.