Tellus Equipment Solutions (Tellus), a John Deere agricultural and turf dealer with 24 locations across south and central Texas, closed a new $115 million credit facility, which will provide the company with additional financial flexibility to invest in operations and pursue acquisitions.
The credit facility has a five-year maturity and an accordion feature to provide additional funding for future acquisitions. The credit facility was arranged by Truist Securities as lead arranger and sole bookrunner. Hancock Whitney and Northern Trust also participated in the credit facility.
Tellus operates in an exclusive territory which covers 51 Texas counties. The company provides equipment, parts and service support to a range of customers, including farmers, ranchers and commercial businesses.
“We take great pride in our reputation as a trusted partner of John Deere and as a leading provider of agricultural equipment and solutions in Texas,” Jeff Donaldson, CEO of Tellus, said. “This credit facility will allow us to make further investments in our employees and facilities while also improving our capabilities and business processes to better serve our customers.”
In addition to investing to improve its existing business, Tellus plans to pursue acquisitions to grow its footprint. The company plans to make investments that will include training and development programs for employees, facility improvements and capability building.
“Given the recent instability and tight credit conditions in the banking sector, we are thrilled with the closing of this credit facility in terms of pricing, sizing and participation achieved. This is a testament to the confidence in our company and growth strategy,” Anthony Willis, managing director of Cardinal System Holdings, the parent company of Tellus, said. “We look forward to building Tellus both organically and through strategic acquisitions.”
