Mullen Group obtains new C$100 million revolver with CIBC

By Rebecca Melvin

Concord, N.H., Oct. 1 – Mullen Group Ltd. obtained a new C$100 million revolving demand credit facility with Canadian Imperial Bank of Commerce, according to a company release on Friday.

The funds are available in, among other forms, Canadian dollar loans, U.S. dollar loans and Canadian dollar banker's acceptances.

Interest on the facility is based on either the Canadian bank prime rate plus 50 basis points or the U.S. bank base rate plus 50 bps, in each case payable in arrears or banker's acceptance rates plus an acceptance fee of 150 bps.

The proceeds of the revolver will be used for general operating requirements including acquisition transactions.

The facility via CIBC is unsecured, but Mullen Group’s wholly-owned subsidiary, MT Investments Inc., has granted an unlimited guarantee of any debt owed on the facility. The facility does not have any financial covenants.

The company also announced it has amended the terms of an existing C$150 million revolving demand credit facility with Royal Bank of Canada to add MT Investments as a guarantor. MTI has granted an unlimited guarantee of any debt owed on the RBC credit facility, which remains the same in all other material terms.

Mullen is a trucking and logistics services company based in Okotoks, Alta.

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