Quarterhill (TSX: QTRH) (OTCQX: QTRHF) has secured a $60 million senior secured credit facility with U.S. Private Credit Investments, a division of BTG Pactual Global Alternatives, with Roth Canada serving as co-lead debt advisor. The financing consists of a $30 million initial term loan facility, a $25 million delayed draw term loan facility, and a $5 million revolving credit facility. This strategic move is significant because it reshapes Quarterhill's capital structure, reduces reliance on convertible debentures, and provides flexible capital for growth initiatives in the competitive intelligent transportation systems market.
The proceeds will be used to repay obligations under Quarterhill's existing credit agreement, redeem its convertible debentures, pay transaction fees and expenses, and provide working capital. By replacing existing debt and convertible debentures with a secured credit facility, Quarterhill may lower its cost of capital and extend maturities, enhancing financial stability. The delayed draw and revolving components offer additional liquidity for operational needs and potential investments. Moreover, the establishment of a $100 million uncommitted accordion, subject to PCI agreement and customary conditions, positions Quarterhill to pursue inorganic growth opportunities. This could include acquisitions of complementary technologies or businesses, accelerating its expansion in smart infrastructure and AI-enabled transportation solutions.
Quarterhill operates in the Intelligent Transportation System industry, providing smart infrastructure solutions and AI- and machine learning-enabled transportation technologies. Its platforms process billions of transactions annually, perform compliance and safety inspections on millions of commercial vehicles, and enable transportation agencies worldwide to optimize thousands of lanes of traffic. The new financing supports Quarterhill's mission to advance mobility through solutions that reduce congestion, improve roadway safety, and create more sustainable travel. For investors, the facility signals confidence from a private credit investor and enhances Quarterhill's ability to execute its strategy without diluting equity. To view the full press release, visit https://ibn.fm/GSsqN.
Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information, visit https://www.quarterhill.com/. The announcement was disseminated by InvestorWire, a specialized communications platform that is part of the Dynamic Brand Portfolio @ IBN. InvestorWire provides wire-grade press release syndication and editorial syndication to 5,000+ outlets, along with press release enhancement and social media distribution. For full terms of use and disclaimers, see https://www.InvestorWire.com/Disclaimer.
