Wheels Announces New Credit Facility
TORONTO, Feb. 12, 2014 /CNW/ - Wheels Group Inc. ("Wheels" or the "Company") (TSXV: WGI) (OTCQX: WGIJF), a leading North American non-asset third party logistics ("3PL") provider, today announced that it has entered into a new credit agreement with its syndicate of lenders including the Bank of Montreal, as lead, and HSBC Bank Canada.
The new three year credit agreement includes a $15 million operating line and refinances approximately $19.3 million in existing term debt that includes refinancing $7 million of 8% term debt. The new term debt facility is non-revolving and is amortized over seven years with quarterly principal repayments. The agreement includes an acquisition facility of up to $5 million to support Wheels' strategic growth plans. The agreement provides for an additional $7.5 million in term debt, subject to lenders review and approval, to support the redemption of the Company's outstanding Class 1A Preference Shares, due on December 31, 2014. The new facility is secured by the assets of the Company and matures on February 12, 2017.
"We are pleased to continue our relationship with BMO and welcome HSBC to our syndicate of lenders." said Ted Irwin, Chief Financial Officer of Wheels. "This enhanced credit facility provides lower debt service costs, reduced principal repayments and greater flexibility, further strengthening Wheels' financial position as we execute our strategy of combining strategic profitable acquisitions with consistent organic growth."
Further information can be found in the disclosure documents filed by Wheels Group Inc. with the securities regulatory authorities, available under the profile of the Company at www.SEDAR.com.
Founded in 1988, Wheels is a leading North American 3PL, supply chain logistics provider. As a non-asset provider, the Company develops advanced supply chain solutions delivered through its qualified partner network of over 6,000 truck, rail, air and ocean carriers. Wheels serves consumer goods, food and beverage, manufacturing and retail clients through 26 offices throughout the US and Canada. Wheels has been named one of Canada's 50 Best Managed Companies since 1997, with Platinum status since 2003. Wheels has been named one of North America's Top 100 Third-Party Logistics ("3PL") Companies, one of the Top 100 Food 3PL's and one of the Top Five Intermodal Marketing Companies.
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SOURCE Wheels Group Inc.For further information:
Patrick J Marshall
VP Corporate Development & Investor Relations
Tel: (905) 602-2700