FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
 
Skip Navigation LinksHome / Articles / Read Article

Print

BMO Harris, JPMorgan Chase, WFCF Provide $292MM ABL Facility to Roadrunner Transportation Systems

Date: Jul 24, 2017 @ 07:22 AM
Filed Under: Transportation

Roadrunner Transportation Systems, Inc., an asset-right transportation and asset-light logistics service provider, announced that it has closed a new five-year $292 million asset-based lending facility 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. The 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. Scott Dobak is the Chief Executive Officer of Dicom Transportation Group, a Montreal-based provider of express, freight and logistics services to business in the U.S. and Canada. Cody 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, Chief Executive Officer.

Stoelting continued, “We are also excited to add Scott Dobak and Cody Kittle to our board of directors. Scott is a 30-year transportation industry veteran, having served in various management roles at YRC Worldwide and with Roadrunner, where he led our LTL and third party logistics businesses for six years until December 2013 when he joined Dicom. Cody brings tremendous financial expertise and strategic experience having worked in investment banking at J.P. Morgan and in private equity at Wind Point Partners prior to joining Elliott Management.”

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.