Quarterhill Inc. (TSX: QTRH) (OTCQX: QTRHF), a global leader in the Intelligent Transportation System (ITS) industry, announced it 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 on the transaction. The financing consists of three components: a $30 million initial term loan facility, a $25 million delayed draw term loan facility, and a $5 million revolving credit facility.
The proceeds from the credit facility 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 accordion feature provides the company with significant financial flexibility to pursue strategic acquisitions or investments as opportunities arise.
Quarterhill's core business focuses on smart infrastructure solutions and AI- and machine learning-enabled transportation technologies. Each year, the company's platforms process billions of transactions, perform compliance and safety inspections on millions of commercial vehicles, and enable transportation agencies worldwide 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 new credit facility is important for Quarterhill as it refinances existing obligations and strengthens the company's balance sheet. By redeeming convertible debentures, Quarterhill simplifies its capital structure and reduces potential dilution for shareholders. The delayed draw term loan facility and revolving credit facility provide additional liquidity for working capital needs, while the $100 million accordion offers a war chest for growth. This financial maneuver positions Quarterhill to capitalize on opportunities in the rapidly evolving ITS market, where demand for smart mobility solutions is increasing.
For investors, the announcement signals confidence from a private credit lender and provides Quarterhill with the resources to execute its strategic plan. The company's focus on intelligent transportation aligns with global trends toward urbanization, sustainability, and safety. As transportation agencies seek to reduce congestion and improve roadway safety, Quarterhill's AI-driven platforms are well-positioned to meet these needs. The credit facility thus supports both near-term stability and long-term growth potential.
Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information, visit https://www.quarterhill.com/.
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