Quarterhill Inc. (TSX: QTRH) (OTCQX: QTRHF), a global leader in the Intelligent Transportation System (ITS) industry, has secured a $60 million senior secured credit facility with U.S. Private Credit Investments (PCI), a division of BTG Pactual Global Alternatives. Roth Canada served 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. 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. Additionally, Quarterhill established a $100 million uncommitted accordion, subject to PCI agreement and customary conditions, to support inorganic growth initiatives.
This announcement matters because it significantly strengthens Quarterhill's balance sheet and provides substantial financial firepower for strategic initiatives. The new credit facility replaces existing obligations and redeems convertible debentures, simplifying the company's capital structure and potentially reducing interest costs. More importantly, the $100 million accordion gives Quarterhill the ability to pursue acquisitions or other growth opportunities without immediate additional financing, which is crucial in the rapidly evolving ITS market. As transportation agencies worldwide seek smarter, more efficient solutions to reduce congestion and improve safety, Quarterhill's AI- and machine-learning-enabled platforms are well-positioned to capture growing demand. The financing ensures the company has the resources to invest in innovation and expand its market presence.
Quarterhill's platforms process billions of transactions annually, perform compliance and safety inspections on millions of commercial vehicles, and enable transportation agencies to optimize thousands of lanes of traffic. By leveraging advanced artificial intelligence and machine learning, Quarterhill delivers automation and predictive insight to help agencies manage transportation networks more efficiently. The company works closely with governments, communities, and industry leaders to build today's connected roadways and shape the next generation of intelligent, resilient mobility. For more information, visit https://www.quarterhill.com/.
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