UTi Worldwide announced the successful closing of its senior secured asset-based revolving credit facility with Citigroup Global Markets, Morgan Stanley Senior Funding and Bank of the West. The ABL facility provides commitments of $150 million and expires in five years.
Borrowings under the ABL facility are subject to a borrowing base calculated by reference to A/R in the U.S. and Canada.
The ABL facility is the final piece of the refinancing transactions that were first announced on February 26, 2014. The refinancing also included the issuance of $400 million aggregate principal amount of 4.50% convertible senior notes due 2019 and $175 million of convertible preference shares. Proceeds from the refinancing have been used to repay prior indebtedness and for general corporate purposes. In connection with the closing of the ABL facility, the company repaid all amounts outstanding under, and terminated, three separate credit facilities with Commerzbank, Bank of the West and Nedbank.
Eric W. Kirchner, CEO, said, “We’re pleased to announce the closing of the ABL facility, which increases the financial flexibility provided by the refinancing. The $725 million refinancing, including the ABL facility, provides the company with a strong balance sheet. It also allows us to focus on completing our transformation and growing our business. As previously reported, we plan to seek shareholder approval at our June Annual Meeting to provide us the flexibility to settle the convertible notes in cash. If the notes were to be settled in cash, there would be no equity dilution associated with the issuance of the notes unless and until the price of our ordinary shares exceeds the conversion price. Actual payment terms will depend on market conditions at the time of settlement.”
UTi Worldwide is an international, non-asset-based supply chain services and solutions company providing air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage and other supply chain management services.