LONG BEACH, Calif., March 27, 2014 (GLOBE NEWSWIRE) -- UTi Worldwide Inc. (Nasdaq:UTIW) today announced the successful closing of its senior secured asset-based revolving credit facility (the "ABL Facility") with Citigroup Global Markets Inc., Morgan Stanley Senior Funding, Inc. and Bank of the West. The ABL Facility provides commitments of $150 million and expires in five years. Borrowings under the ABL Facility are subject to a borrowing base calculated by reference to accounts receivable in the United States and Canada.
The ABL Facility is the final piece of the refinancing transactions that were first announced on February 26, 2014. The refinancing also included the issuance of $400 million aggregate principal amount of 4.50% Convertible Senior Notes due 2019 and $175 million of Convertible Preference Shares. Proceeds from the refinancing have been used to repay prior indebtedness and for general corporate purposes. In connection with the closing of the ABL Facility, the company repaid all amounts outstanding under, and terminated, three separate credit facilities with Commerzbank, Bank of the West and Nedbank, Ltd.
Eric W. Kirchner, chief executive officer, said, "We're pleased to announce the closing of the ABL facility, which increases the financial flexibility provided by the refinancing. The $725 million refinancing, including the ABL Facility, provides the company with a strong balance sheet. It also allows us to focus on completing our transformation and growing our business.
"We've also made significant progress on our transformation, including the recent launch of our 1View freight forwarding operating system in China and South Africa. We now have deployed our new system in 32 countries, which represents approximately 72 percent of freight forwarding transactions."
Kirchner continued, "As previously reported, we plan to seek shareholder approval at our June Annual Meeting to provide us the flexibility to settle the convertible notes in cash. If the notes were to be settled in cash, there would be no equity dilution associated with the issuance of the notes unless and until the price of our ordinary shares exceeds the conversion price. Actual payment terms will depend on market conditions at the time of settlement."
About UTi Worldwide
UTi Worldwide Inc. is an international, non-asset-based supply chain services and solutions company providing air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage, and other supply chain management services. The company serves a large and diverse base of global and local companies, including clients operating in industries with unique supply chain requirements such as the retail, apparel, chemical, automotive, pharmaceutical, and technology industries. The company seeks to use its global network, proprietary information technology systems, and relationships with transportation providers, and expertise in outsourced logistics services to deliver competitive advantage to each of its clients' supply chains.
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release which address activities, events or developments that UTi expects or anticipates will or may occur in the future, including such things as such things as the results of any shareholder vote regarding the convertible notes, the expected benefits of the refinancing, including allowing us to complete our transformation and future growth in our business and other such matters, are forward-looking statements. These statements are based on certain assumptions and analyses made by UTi in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as "may," "will," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these terms or other comparable terms. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements. Factors that might cause or contribute to a material difference include, but are not limited to, the risks in UTi's filings with the SEC and the following: UTi's ability to maintain sufficient liquidity and capital resources to fund its business; UTi's ability to complete its business transformation initiatives in the timeframe anticipated and achieve the expected benefits; UTi's ability to generate sufficient cash to service all of its debt; UTi's ability to refinance, renew or replace its credit facilities and other indebtedness on commercially reasonable terms or at all; delays or inability to pay by UTi's customers; dilution in connection with the private placement of convertible preference shares and dilution in connection with the offering of the Notes; volatility with respect to global trade; global economic, political and market conditions and unrest, including those in Africa, Asia Pacific and EMENA (which is comprised of Europe, Middle East and North Africa); risks associated with UTi's ongoing business transformation initiative, which include unanticipated difficulties, delays, additional costs and expenses as well as potential billing delays; volatile fuel costs; transportation capacity, pricing dynamics and the ability of UTi to secure space on third party aircraft, ocean vessels and other modes of transportation; changes in interest and foreign exchange rates, particularly with respect to the South African rand; material interruptions in transportation services; risks of international operations; risks associated with, and the potential for penalties, fines, costs and expenses the company may incur as a result of investigations by the governments of Brazil and Singapore into the international air freight and air cargo transportation industry; risks of adverse legal judgments or other liabilities not limited by contract or covered by insurance; UTi's ability to retain clients while facing increased competition; the financial condition of UTi's clients; disruptions caused by epidemics, natural disasters, conflicts, strikes, wars and terrorism; the impact of changes in UTi's effective tax rates; the other risks and uncertainties described herein and in UTi's other filings with the SEC; and other factors outside UTi's control. All forward-looking statements set forth in this press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on UTi or its business or operations. Forward-looking statements set forth in this press release speak only as of the date hereof and UTi does not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except as required by law.
Jeff Misakian Global Vice President, Investor Relations (562) 552-9417