UTi Worldwide issues US$150M, principal amount, of senior unsecured guaranteed notes; company also amends, extends letter of credit facilities, enters new revolving credit facility
LONG BEACH, California
June 28, 2011
– Company Also Enters Into New Credit Facility
UTi Worldwide UTIW +2.45% today announced that it has successfully issued $150 million (principal amount) of senior unsecured guaranteed notes, amended and extended two of its existing letter of credit facilities and entered into a new revolving credit facility.
The new notes were issued in a private offering, bear a fixed rate of interest of 3.67 percent per annum and amortize semi-annually beginning February 2014 through maturity in August 2018. Certain other terms of the notes are similar to those under the company's existing senior unsecured guaranteed notes which it issued in July 2009 and which mature August 2014. A portion of the proceeds from the new notes was used to pay the approximately $33.3 million of principal amount remaining outstanding under the company's unsecured notes issued in 2006, which notes had a July 9, 2011 termination date.
The company also announced that it has amended and restated its existing letter of credit facility with Nedbank Limited, acting through its London branch ("Nedbank"), and its letter of credit facility with the Royal Bank of Scotland ("RBS"). The amended and restated letter of credit and cash draw facility with Nedbank provides for a $40.0 million committed standby letter of credit facility (which according to the agreement may be increased by the parties in the future by up to an additional $35.0 million), and a $35.0 million cash draw facility. The amended and restated letter of credit facility with RBS provides for an uncommitted availability for letters of credit of up to $50.0 million. At the same time, UTi entered into a new unsecured revolving credit facility with Bank of the West that provides for up to $50.0 million of availability for both cash draws and letters of credit
Additional information concerning the notes and credit facilities may be found in a Form 8-K that will be filed by the company with the United States Securities and Exchange Commission within four business days.
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 pharmaceutical, retail, apparel, chemical, automotive and technology industries. The company seeks to use its global network, proprietary information technology systems, relationships with transportation providers, and expertise in outsourced logistics services to deliver competitive advantage to each of its clients' supply chains. For more information, please go to www.go2uti.com .