Radiant Logistics, a domestic and international logistics services company, announced it has secured a new $30 million senior credit facility with Bank of America. The facility replaces the company’s $20 million facility with Bank of America and provides the company with higher advance rates and less restrictive financial and operational covenants than the previous facility.

Under the terms of the facility, borrowings through the first anniversary of the new facility accrue interest, at the company’s option, at the lender’s base rate plus 0.50% or LIBOR plus 2.25%, and can subsequently be adjusted based on the company’s fixed charge coverage ratio at the lender’s base rate plus 0.0% to 0.50% or LIBOR plus 1.50 % to 2.25%.

In compliance with the terms of the company’s existing $10 million subordinated debt, the facility is structured to expire on the earlier of (1) six months prior to the December 1, 2016 maturity of the subordinated debt, or (2) August 1, 2018. Under the terms of the subordinated debt, the company can repay all or a portion of the $10 million, which accrues interest at a rate of 13.5% per annum, as early as December 1, 2013.

The facility is collateralized by accounts receivable and other assets of the company and its subsidiaries and provides for advances of up to 85% of eligible domestic accounts receivable and, subject to certain sub-limits, provides for advances of up to 75% of eligible accrued but unbilled receivables and eligible foreign accounts receivable.

Under the terms of the facility, the company is subject to a single financial covenant which requires the company to maintain a fixed charge coverage ratio of 1.1 to 1 if, and only if, net availability under the facility falls below $5 million. In addition, the company is authorized to pursue acquisitions, pay-down subordinated debt and/or repurchase Company stock so long as the Company maintains a minimum availability under the Senior Facility of the greater of (a) $5 million or (b) 20% of gross availability under the Senior Facility. Under the terms of the facility, as of June 30, 2013 the company had gross availability of approximately $27 million, advances of approximately $9 million and net availability of approximately $18 million.