Roadrunner Transportation Systems Inc (NYSE: RRTS), an asset-right transportation and asset-light logistics service provider, has closed on a new five-year $292 million asset-based lending facility (ABL) provided by BMO Harris Bank, JPMorgan Chase and Wells Fargo Capital Finance.
Raymond James served as financial advisor to Roadrunner on this transaction.
The ABL consists of a $200 million revolver secured by accounts receivable and spare parts inventory, a $57 million term loan secured by transportation equipment, and a $35 million deferred draw term loan for future transportation equipment financing.
Initial proceeds from this facility were used for working capital purposes and to redeem all outstanding shares of Roadrunner’s Series F Cumulative Redeemable Preferred Stock originally issued in early May.
Roadrunner also announced that it has added Scott L Dobak and Ralph “Cody” Kittle to its board of directors. Dobak is the chief executive officer of Dicom Transportation Group, a Montreal-based provider of express, freight and logistics services to business in the United States and Canada. Kittle is an analyst at Elliott Management Corporation, a multi-strategy investment fund based in New York.
“As planned, we have successfully closed on a new ABL facility which completes the last key step in our recapitalization. We now have the financing and capital in place to support our current business levels and organic growth over the next five years,” said Curt Stoelting, CEO.
Roadrunner provides a full suite of solutions under the Roadrunner Temperature Controlled, Roadrunner Freight, Roadrunner Express, Roadrunner Truckload Plus, Roadrunner Intermodal Services and Ascent Global Logistics brands. The brand offers solutions including temperature-controlled truckload logistics, less-than-truckload, air and ground domestic and cross-border expedite, intermodal, and dry van services. The Ascent Global Logistics brand supplies domestic freight management, retail consolidation, international freight forwarding and customs brokerage.
Go to www.rrts.com and www.ascentgl.com for further information.