Quest Resource Holding Corporation Announces Successful Completion of Debt Refinancing
Quest Resource Holding (QRHC) has successfully completed its debt refinancing process with Monroe Capital Management Advisors and PNC Bank. The new terms include a $54 million term loan from Monroe with maturity extended to June 2030 and a reduced interest rate of SOFR plus 450-550 basis points. PNC Bank increased the revolver commitment from $35 million to $45 million with maturity extended to December 2029.
The refinancing will decrease the company's blended interest rate margin by approximately 150 basis points, resulting in annual interest expense savings of about $1 million. The improved terms reflect Quest's strong credit profile and will enhance financial flexibility to support long-term organic growth and M&A strategies.
Quest Resource Holding (QRHC) ha completato con successo il suo processo di rifinanziamento del debito con Monroe Capital Management Advisors e PNC Bank. I nuovi termini includono un prestito a termine di 54 milioni di dollari da Monroe, con scadenza estesa a giugno 2030 e un tasso d'interesse ridotto pari a SOFR più 450-550 punti base. PNC Bank ha incrementato l'impegno della linea di credito da 35 milioni di dollari a 45 milioni di dollari, con scadenza estesa a dicembre 2029.
Il rifinanziamento ridurrà il margine medio del tasso d'interesse dell'azienda di circa 150 punti base, garantendo un risparmio annuale sulle spese per interessi di circa 1 milione di dollari. I termini migliorati riflettono il forte profilo creditizio di Quest e miglioreranno la flessibilità finanziaria per supportare la crescita organica a lungo termine e le strategie di fusione e acquisizione.
Quest Resource Holding (QRHC) ha completado con éxito su proceso de refinanciación de deuda con Monroe Capital Management Advisors y PNC Bank. Los nuevos términos incluyen un préstamo a plazos de 54 millones de dólares de Monroe, con vencimiento extendido a junio de 2030 y una tasa de interés reducida de SOFR más 450-550 puntos básicos. PNC Bank aumentó el compromiso de la línea de crédito de 35 millones a 45 millones de dólares, con vencimiento extendido a diciembre de 2029.
El refinanciamiento disminuirá el margen de tasa de interés promedio de la compañía en aproximadamente 150 puntos básicos, resultando en ahorros anuales en gastos por intereses de alrededor de 1 millón de dólares. Los términos mejorados reflejan el sólido perfil crediticio de Quest y mejorarán la flexibilidad financiera para apoyar el crecimiento orgánico a largo plazo y las estrategias de fusiones y adquisiciones.
Quest Resource Holding (QRHC)는 Monroe Capital Management Advisors 및 PNC Bank와 함께 부채 재조정 프로세스를 성공적으로 완료했습니다. 새로운 조건에는 Monroe로부터의 5400만 달러의 대출이 포함되며, 만기는 2030년 6월로 연장되었고, 이자율은 SOFR에 450-550 기본 포인트가 추가된 수준으로 낮아졌습니다. PNC Bank는 신용 한도를 3500만 달러에서 4500만 달러로 늘렸으며, 만기는 2029년 12월로 연장되었습니다.
이번 재조정은 회사의 복합 이자율 마진을 약 150 기본 포인트 줄여 연간 이자 비용에서 약 100만 달러의 절감 효과를 가져올 것입니다. 개선된 조건은 Quest의 강력한 신용 프로필을 반영하며, 장기적인 유기적 성장과 M&A 전략을 지원하기 위한 재정적 유연성을 강화할 것입니다.
Quest Resource Holding (QRHC) a réussi à finaliser son processus de refinancement de la dette avec Monroe Capital Management Advisors et PNC Bank. Les nouveaux termes incluent un prêt à terme de 54 millions de dollars de Monroe avec une échéance prolongée jusqu'en juin 2030 et un taux d'intérêt réduit de SOFR plus 450-550 points de base. PNC Bank a augmenté l'engagement de la ligne de crédit de 35 millions à 45 millions de dollars, avec une échéance prolongée jusqu'en décembre 2029.
Le refinancement permettra de réduire la marge d'intérêt globale de l'entreprise d'environ 150 points de base, entraînant des économies annuelles d'environ 1 million de dollars sur les frais d'intérêt. Les conditions améliorées reflètent le solide profil de crédit de Quest et renforceront la flexibilité financière pour soutenir la croissance organique à long terme ainsi que les stratégies de fusions et acquisitions.
Quest Resource Holding (QRHC) hat erfolgreich den Prozess der Schuldenrefinanzierung mit Monroe Capital Management Advisors und PNC Bank abgeschlossen. Die neuen Bedingungen umfassen einen Darlehen über 54 Millionen Dollar von Monroe mit einer verlängerten Laufzeit bis Juni 2030 und einem reduzierten Zinssatz von SOFR zuzüglich 450-550 Basispunkten. PNC Bank hat das Revolving-Darlehen von 35 Millionen auf 45 Millionen Dollar erhöht, mit einer verlängerten Laufzeit bis Dezember 2029.
Die Refinanzierung wird die gewichtete Zinsspanne des Unternehmens um etwa 150 Basispunkte senken, was zu jährlichen Zinseinsparungen von etwa 1 Million Dollar führt. Die verbesserten Bedingungen spiegeln das starke Kreditprofil von Quest wider und werden die finanzielle Flexibilität erhöhen, um das langfristige organische Wachstum und die Fusions- und Akquisitionsstrategien zu unterstützen.
- Annual interest expense reduction of $1 million
- Revolving credit line increased by $10 million to $45 million
- Interest rate margin reduced by 150 basis points
- Term loan maturity extended to June 2030
- Revolver maturity extended to December 2029
- None.
Insights
New Terms Significantly Reduce Interest Expense & Borrowing Costs, Extend Maturities, and Enhance Financial Flexibility
THE COLONY, Texas, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Quest Resource Holding Corporation (Nasdaq: QRHC) (“Quest” or the “Company”), a national leader in environmental waste and recycling services, today announced that the Company has successfully completed its refinancing process, and has amended its financing agreements with Monroe Capital Management Advisors, LLC (“Monroe”) and PNC Bank (“PNC”).
“Earlier this year, the Board of Directors announced the formation of a financing committee to evaluate alternative debt structures focused on lowering the Company’s long-term cost of capital and supporting long-term growth. After an exhaustive process, which included discussions and proposals from multiple financing sources, the Company has executed on a new lending package that will decrease our blended interest rate margin by about 150 basis points, reducing interest expense by approximately
S. Ray Hatch, President and Chief Executive Officer of Quest, added, “The substantial reduction in interest expense and rates, reduced fees, and improved terms all reflect the strong credit profile of our company and the strength of our business model. With an increased revolving credit line, improved terms, and extended maturities, our balance sheet is stronger and is well-positioned to support our long-term organic growth and opportunistic M&A strategies.”
“We greatly appreciate the support of our partners at PNC and Monroe and are looking forward to continuing to work with them going forward. Their confidence in our business was clearly demonstrated and positions us well for the future,” said Brett Johnston, Chief Financial Officer.
Summary of the amended credit agreement with Monroe Capital Management Advisors, LLC
$54 million aggregate principal amount of term loan;- Extended maturity date to June of 2030;
- Reduced interest rate of SOFR plus 450 to 550 basis points that varies based on leverage, reflecting a margin reduction of 100 to 200 basis points from the previous agreement.
Summary of the amended credit agreement with PNC Bank
- Increased revolver commitment from
$35 million to$45 million ; - Extended maturity date to December of 2029;
- Reduced interest rate of SOFR plus 200 basis points, reflecting a margin reduction of 25 basis points from the previous agreement;
- Improved terms to increase availability.
Additional information about the terms of the financing agreements can be found in our Current Report on Form 8-K filed today with the U.S. Securities and Exchange Commission (the “SEC”).
About Quest Resource Holding Corporation
Quest is a national provider of waste and recycling services that enable larger businesses to excel in achieving their environmental and sustainability goals and responsibilities. Quest delivers focused expertise across multiple industry sectors to build single-source, client-specific solutions that generate quantifiable business and sustainability results. Addressing a wide variety of waste streams and recyclables, Quest provides information and data that tracks and reports the environmental results of Quest’s services, gives actionable data to improve business operations, and enables Quest’s clients to excel in their business and sustainability responsibilities. For more information, visit www.qrhc.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which provides a “safe harbor” for such statements in certain circumstances. The forward-looking statements include, but are not limited to, our belief that with an increased revolving credit line, improved terms and extended maturities, our balance sheet is stronger and is well-positioned to support our long-term organic growth and opportunistic M&A strategies. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including, but not limited to, competition in the environmental services industry, the impact of the current economic environment, the spread of major epidemics (including Coronavirus) and other related uncertainties such as government-imposed travel restrictions, interruptions to supply chains, commodity price fluctuations, extended shut down of businesses, and other factors discussed in greater detail in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2023. You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.
Investor Relations Contact:
Three Part Advisors, LLC
Joe Noyons
817.778.8424
FAQ
How much will QRHC save annually from its December 2024 debt refinancing?
What is the new revolving credit line amount for QRHC after the December 2024 refinancing?
What is the maturity date of QRHC's new term loan with Monroe Capital?
How much did QRHC's interest rate margin decrease in the December 2024 refinancing?
What is the size of QRHC's term loan with Monroe Capital after refinancing?
