Daseke Broadcasts Time period Mortgage Refinancing and Nasdaq Credit score Score Hikes: DSKE
New Covenant-lite time period mortgage extends maturity to 2028 and reduces annual money curiosity
Moody’s and S&P World improve Daseke’s score to “B2” and “B”, respectively
ADDISON, Texas, March 10, 2021 (GLOBE NEWSWIRE) – Daseke, Inc. (NASDAQ: DSKE) (“Daseke” or the “Firm”), the biggest specialist flatbed transportation and logistics options firm in North America , introduced at this time that it has refinanced its current $ 484 million B-term mortgage due February 2024 with a brand new $ 400 million B-term mortgage and money available. The brand new B time period mortgage, maturing in March 2028, has a floating rate of interest of LIBOR + 400 foundation factors, which is diminished by LIBOR + 500 foundation factors (the LIBOR ground has additionally been diminished by 100 foundation factors at 75 foundation factors). The transaction closed on March 9, 2021. As well as, the Firm will search to amend its ABL credit score settlement to extend the utmost commitments below it from $ 100 million to $ 150 million, with an uncommitted accordion. of $ 50 million.
Highlights of the transaction:
- The corporate will use $ 84 million of its $ 176 million money and money equivalents steadiness as at December 31, 2020 to repay debt, which was because of the extra money generated from operations throughout from the earlier yr
- Vital lower in curiosity expense in money below a brand new time period mortgage
- Extends the maturity of the Firm’s debt from 2024 to 2028
- Creates further monetary flexibility by an improved lean alliance construction
- Additional strengthens the steadiness sheet and supplies the power to put money into natural and strategic progress
- At closing, the Firm’s estimated web debt ratio as outlined by its credit score settlement will probably be roughly 2.7x below the phrases of the credit score settlement.
“We’re glad with the improved phrases of the brand new B Time period Mortgage, which have been supported by the improved financial efficiency of the corporate and its distinctive aggressive positioning,” commented Jason Bates, CFO of Daseke. “Executing towards our strategic plan over the previous six quarters has considerably improved our operational and monetary efficiency, and has helped us strengthen our steadiness sheet and considerably enhance credit score metrics. Given the engaging market setting, we consider the time has come to make use of our robust money place to scale back the corporate’s monetary leverage. Moreover, Daseke’s strengthening credit score profile has been acknowledged by score businesses, and the completion of this refinancing additional expands our monetary flexibility, particularly given the improved pricing and clause construction. restrictive. The decrease value of debt capital and better monetary flexibility below the brand new time period mortgage will assist meet strategic wants and search accretive progress alternatives. We stay dedicated to persevering with the transformation of our enterprise and fostering sustainable progress in our gross sales and profitability. “
In reference to the refinancing, on February 23, 2021, Moody’s Funding Providers (“Moody’s”) upgraded the rankings of Daseke’s household of firms and seniors to “B2” from “B3”, and S&P World (“S&P”) a improve the issuer credit score household and Daseke time period mortgage rankings to “B”.
JPMorgan Chase Financial institution, NA acted as unique arranger and sole bookrunner for Daseke within the execution of this transaction.
About Daseke, Inc.
Daseke, Inc. is the biggest flatbed and specialty transportation and logistics firm in North America. Daseke supplies complete, best-in-class service to lots of the world’s most revered industrial shippers with skilled individuals, a fleet of over 5,000 tractors, and 11,500 flatbed and specialty trailers. For extra data, please go to www.daseke.com.
This press launch incorporates “forward-looking statements” inside the that means of the Personal Securities Litigation Reform Act of 1995. Ahead-looking statements might be recognized by means of phrases similar to “could”, “will”, “anticipate”, ” anticipate, “proceed”, “estimate”, “plan”, “consider”, “plan”, “ought to”, “might”, “would”, “foresee”, “search”, “goal”, “foresee,” And “potential” means the destructive of those phrases or every other comparable terminology. Projected monetary data, together with our outlook, is forward-looking statements.
These forward-looking statements are based mostly on data obtainable on the date of this press launch, in addition to present expectations, forecasts and assumptions. Though administration believes that these forward-looking statements are affordable as they’re made, there might be no assurance that future developments that can have an effect on us will probably be as the corporate expects. Specifically, the Firm doesn’t assure that its ABL credit score facility will change as at present deliberate. Subsequently, forward-looking statements shouldn’t be taken to characterize the views of the corporate at a later date, and the corporate doesn’t undertake any obligation to replace any forward-looking statements to replicate occasions or circumstances after the date. to which they had been made, whether or not on account of new data, future occasions or in any other case, besides to the extent required by relevant securities legal guidelines. Subsequently, readers are cautioned to not place undue reliance on forward-looking statements.
The impact of the COVID-19 pandemic could stay widespread for a major time frame and will proceed to negatively have an effect on the enterprise, outcomes of operations and monetary situation of the corporate even after the tip of the COVID pandemic. 19 and the “keep at residence” warrants had been lifted. The extent to which the COVID-19 pandemic will influence society will rely on many altering components and future developments that it can’t predict. There are not any comparable latest occasions that present any indication of the impact the worldwide COVID-19 pandemic could have and, due to this fact, the last word influence of the pandemic may be very unsure and topic to alter. As well as, the corporate will usually assess its capital construction and liquidity place. Occasionally and as alternatives come up, the Firm could entry debt capital markets and modify its debt preparations to optimize its capital construction and liquidity place.
Ahead-looking statements are topic to dangers and uncertainties (a lot of that are past our management) that would trigger precise outcomes or outcomes to vary materially from these indicated by such forward-looking statements. These components embody, however usually are not restricted to, normal financial and enterprise dangers, similar to slowdowns in buyer enterprise cycles and disruptions within the capital and credit score markets, the influence on the enterprise and operations of the corporate ensuing from the COVID-19 pandemic, the power to execute and notice all of the anticipated advantages of its integration, enchancment of its actions and full restructuring plans, the power of the corporate to hold out its deliberate or future divestments, the corporate’s skill to adequately address declining costs and different aggressive pressures, shortages of driver compensation or owner-operator contractual charges, lack of administration or key working personnel, our skill to derive the anticipated advantages from latest or future acquisitions, seasonality and the influence of climate situations logic and different catastrophic occasions, fluctuations within the value or availability of diesel gasoline, elevated costs or decreased availability, new income producing tools and reduces within the worth of used industrial tools, the power to the Firm to generate ample liquidity to repay all of its debt, restrictions in its current and future debt agreements, will increase in rates of interest, adjustments in current legal guidelines or laws, together with legal guidelines and laws environmental and employee well being security and people referring to tax charges or taxes typically, the influence of presidency laws and different authorities actions associated to the Firm and its operations, litigation and authorities procedures, in addition to insurance coverage and claims prices. You shouldn’t place undue reliance on these forward-looking statements. For extra data on recognized materials components that would trigger our precise outcomes to vary from these expressed in forward-looking statements, please see the paperwork filed by Daseke with the Securities and Change Fee, obtainable at www.sec.gov , together with Daseke’s newest annual report on Kind 10-Okay and subsequent quarterly experiences on Kind 10-Q, specifically the part titled “Danger Components”.
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Joseph Caminiti or Chris Hodges