Quarterhill, a provider of tolling and enforcement solutions in the intelligent transportation system (ITS) industry, entered into a new $60 million senior secured credit facility with U.S. Private Credit Investments (PCI), a division of BTG Pactual Global Alternatives.
The financing consists of a $30 million initial term loan facility, a $25 million delayed draw term loan facility and a $5 million revolving credit facility. Proceeds from the facilities will be used to repay obligations under the company’s existing credit agreement, redeem the company’s convertible debentures, pay transaction fees and expenses, and provide working capital. The facilities have a maturity date of May 12, 2031. The facilities are secured by certain assets of Quarterhill and Quarterhill is subject to customary financial and non-financial covenants under the agreement.
To further support its long-term strategy, the company has established an incremental $100 million uncommitted accordion, subject to lender agreement and satisfaction of usual and customary conditions. This is designed to fuel inorganic growth initiatives and allow the company to act quickly on accretive M&A opportunities as they arise.
“This agreement reflects the successful execution of a deliberate plan to reposition this company for sustained growth,” Chuck Myers, CEO of Quarterhill, said. “Roughly a year ago, we committed to three objectives: returning to profitability, strengthening the balance sheet and unlocking the next phase of both organic and inorganic growth. This facility builds on our progress by further anchoring the balance sheet, mitigating foreign exchange exposure and providing the capital flexibility to pursue accretive M&A. Just as meaningful as the capital itself are the partners behind it. We’re fortunate to be working with a group that shares our conviction in Quarterhill, believes in the durability of our platform, and is energized by the long-term opportunity in our markets. Now, with the right capital and partners in place, we have everything we need to move forward with clarity and confidence. Quarterhill’s best chapter is ahead, and we look forward to unlocking value with a leaner, better-capitalized and more growth-oriented business.”
Thomas Steiglehner, head of U.S. PCI at BTG Pactual Global Alternatives, added, “We’re excited to work with Quarterhill and provide the company with a flexible, long-term source of capital to support its growth strategy. We partner with management teams that are building resilient, mission-critical businesses and Quarterhill fits squarely within that focus.”
ATB Cormark Capital Markets and Roth Canada acted as exclusive advisors in connection with the arrangement of the credit facility.
