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April 27, 2011 /PRNewswire/ -- Radiant Logistics, Inc. (OTC QB: RLGT), a domestic and international freight forwarding and logistics services company, today reported that in conjunction with its recently announced acquisition of DBA Distribution Services, Inc. ("DBA") that it had amended its secured credit facility with Bank of America, N.A. (the "Facility") to extend the Facility to
March 31, 2013 and to add DBA as a
Loan Party thereof. The Facility is in the principal amount of
$20 million (including availability for letters of credit), and provides for advances of up to 80% of the Company's eligible accounts receivable. Advances under the Facility are available to fund future acquisitions, capital expenditures or for other corporate purposes. The Facility is collateralized by accounts receivable and other assets of the Company and allows for advances of up to 4.0x the Company's consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) as measured on a rolling four quarter basis.
"Our partnership with Bank of America remains very strong and the credit facility itself, a cost effective source of capital to continue to fuel our growth," said
Bohn Crain, Chairman and CEO. "Even after giving effect for the acquisition of DBA, we continue to enjoy approximately
$10.0 million in borrowing capacity under our senior facility and even at a conservative 3.0x leverage ratio, could carry a total of
$19.0 million in incremental debt capacity based on our existing book of business. Of course, this is before considering the incremental debt capacity that would be created as a result of the additional accounts receivable and earnings power that would be contributed through any future acquisitions. We believe this financial flexibility sets us apart in today's marketplace and leaves us well positioned to continue to execute our three-pronged growth strategy. First, providing continuous improvement to our existing network participants in terms of technology, buy rates and enhanced service offerings; second, building upon the success of our organic growth initiative by on-boarding additional agent stations; and third, opportunistically pursuing acquisition opportunities."
About Radiant Logistics (OTC QB: RLGT)
Radiant Logistics (
www.radiantdelivers.com) is a non-asset based logistics company providing domestic and international freight forwarding and related services through a network of approximately 100 company owned and exclusive agent offices across
North America. Operating under the Airgroup, Adcom Worldwide, Distribution By Air and Radiant brands, the company services a diversified account base including manufacturers, distributors and retailers using a network of independent carriers and international agents positioned strategically around the world. For more information about Radiant Logistics, please contact
Bohn Crain at (425) 943-4599.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding future operating performance, events, trends and plans.All statements other than statements of historical fact contained herein, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues and costs, and plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause our actual results to differ from our expectations, include but are not limited to, DBA's ability following the acquisition to maintain and grow its revenues and operating margins in a manner consistent with its most recent operating results, our ability to integrate DBA's operations with our historic operations, our ability to realize cost synergies through such integration, the effect that the acquisition will have on DBA's existing customers, agents and employees as well as those risk factors that apply to our operations as disclosed in Item 1A of our Report on Form 10-K for the year ended June 30, 2010 and other filings with the Securities and Exchange Commission and other public documents and press releases which can be found on our web-site (www.radiantdelivers.com). Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. Such statements are not guarantees of future performance or events and we undertake no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances occurring after the date hereof.
SOURCE Radiant Logistics, Inc.