Quarterhill (TSX: QTRH) (OTCQX: QTRHF), a global leader in the Intelligent Transportation System (ITS) industry, has secured a $60 million senior secured credit facility from U.S. Private Credit Investments (PCI), 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. 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.
The new credit facility is significant because it strengthens Quarterhill's balance sheet and provides the company with greater financial flexibility to pursue strategic initiatives. By refinancing existing debt and redeeming convertible debentures, Quarterhill reduces its interest expense and simplifies its capital structure. The $100 million uncommitted accordion, subject to PCI agreement and customary conditions, positions the company to support inorganic growth initiatives, such as acquisitions or investments in new technologies, without the need for additional equity dilution. This is particularly important in the rapidly evolving ITS industry, where scale and technological leadership are critical to success.
Quarterhill's 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. Leveraging advanced artificial intelligence and machine learning technologies, Quarterhill's solutions deliver automation and predictive insight to help agencies manage transportation networks more efficiently. The company's focus on smart infrastructure solutions that reduce congestion, improve roadway safety, and create more sustainable travel aligns with global trends toward smarter, more connected cities. The new financing will enable Quarterhill to continue investing in these areas and potentially expand its offerings through acquisitions.
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