© Reuters.
OKOTOKS, Alberta – Mullen (NASDAQ:) Group Ltd., a Canadian logistics provider, has expanded its financial flexibility by increasing its total unsecured borrowing capacity to $375 million. This strategic move was facilitated through a new unsecured credit facility with PNC Bank valued at $125 million. The expansion of the credit facility is a significant step for Mullen Group as it aims to strengthen its financial position.
The company has also managed to reduce its drawdowns on existing facilities with the Canadian Imperial Bank of Commerce (CIBC) and the Royal Bank of Canada (RBC) by $41.2 million. As a result, the total amount drawn as of December 31, 2023, stands at $73 million.
The terms of the borrowing stipulate that the interest on the loans is contingent on the Canadian prime rate or the U.S. base rate, with an additional margin of 0.50%. Borrowers are required to make monthly interest payments. Furthermore, when opting for banker’s acceptances, there is an extra fee of 1.50%.
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