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.
About Wheels
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.
Neither the TSX Venture Exchange, nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Wheels Group Inc.