BofA, BMO Facility Supports Radiant Buy
Radiant Logistics completed its acquisition of Wheels Group. Pursuant to an arrangement agreement and court-administered plan of arrangement governed by Canadian law, Radiant, through its newly formed wholly owned subsidiary Radiant Global Logistics, acquired all of the outstanding common shares of Wheels. The combined company will continue to trade on the NYSE MKT under the symbol RLGT.
Radiant financed the cash portion of the consideration and related fees and expenses through (1) advances under a new $65 million senior secured revolving cross-border credit facility with Bank of America and Bank of Montreal (replacing its exiting $30 million facility), (2) a CAD$29 million senior secured Canadian term loan from Integrated Private Debt Fund IV and (3) a $25 million subordinated secured term loan from Alcentra Capital and Triangle Capital.
Under the arrangement, Radiant purchased all of the outstanding common shares of Wheels for CAD$0.77 per share, payable in cash and shares of Radiant common stock. The total equity value of the transaction is approximately CAD$68.9 million, which consists of approximately CAD$33.9 million in cash and CAD$35.0 million in Radiant common stock. With historic Wheels net debt of approximately CAD$30.0 million that was refinanced in connection with the Arrangement, the total enterprise value of the transaction is approximately CAD$99.0 million.
Bohn Crain, founder and CEO of Radiant, commented, “We are very excited to partner with the Wheels organization, which represents a service line and geographic expansion for both companies. We believe the acquisition further enhances the value proposition we offer our existing operating partners who will now have the opportunity to access a broad range of rail and truck brokerage capabilities in the U.S. and Canada while further differentiating us in the marketplace as we seek to attract additional operators to our platform. In connection with this transaction we are also very pleased to welcome Bank of Montreal as a new participant in our expanded senior credit facility. Post-closing we continue to enjoy significant financial flexibility to execute our growth strategy with over $40.0 million in availability under our new BofABMO facility. It remains an exciting time for Radiant. We continue to develop a robust pipeline of additional acquisition candidates, and we look forward to continuing our organic and acquisitive growth model and providing further updates as things develop.”
Wheels provides intermodal and truck brokerage services throughout the United States and Canada along with third-party logistics solutions and value-added warehouse and distribution service offerings in support of U.S. shippers looking to access the Canadian markets.
Radiant is a non-asset based transportation and logistics company providing domestic and international freight forwarding services and value-added solutions.