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
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
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accepts responsibility for the adequacy or accuracy of this release.
SOURCE Wheels Group Inc.