LONG BEACH, Calif., July 10, 2009 (GLOBE NEWSWIRE) -- UTi Worldwide (Nasdaq:UTIW) today announced that it has successfully replaced the company's existing $250 million credit facility due to expire on July 13, 2009 by issuing senior unsecured guaranteed notes and entering into agreements providing for new working capital and letter of credit facilities.
The new senior unsecured guaranteed notes in the aggregate amount of $55 million, which were issued in a private placement to a limited number of institutional investors, bear a fixed rate of interest of 8.06 percent per annum and amortize in six equal payments beginning February 2012 through maturity in August 2014. The other terms of the notes are similar to those under the company's existing senior unsecured guaranteed notes due July 2011. RBS Securities Inc. served as placement agent for the notes.
The new letter of credit facilities include two separate two-year unsecured letter of credit facilities, one from ABN Amro Bank N.V. and one from Nedbank Limited, acting through its London Branch. These two facilities provide for up to an aggregate of $86 million in letters of credit to support UTi's global operations outside of South Africa. Under a third unsecured letter of credit facility, the Royal Bank of Scotland issued a letter of credit for approximately $44 million which matures on December 31, 2009 and is intended to facilitate the company's global cash management strategies.
Also included in the new credit facilities is a new South African credit facility provided by Nedbank Limited to be utilized by the company's South African operations. The South African credit facility includes a three-year 650 million South African rand (or approximately $83 million) working capital and letter of credit facility.
Eric W. Kirchner, chief executive officer, said, "We are pleased to have completed these new financing arrangements ahead of the expiration of our existing $250 million credit facility, particularly in such arduous economic and lending climates. The new notes and credit facilities will strengthen our liquidity position and supplement our strong free cash flow to provide additional funds for working capital needs during the year."
Additional details on the notes and credit facilities may be found in a Form 8-K that will be filed by the company with the United States Securities and Exchange Commission within four business days.
About UTi Worldwide
UTi Worldwide Inc. is an international, non-asset-based supply chain services and solutions company providing air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage and other supply chain management services. The company serves a large and diverse base of global and local companies, including clients operating in industries with unique supply chain requirements such as the pharmaceutical, retail, apparel, chemical, automotive and technology industries. The company seeks to use its global network, proprietary information technology systems, relationships with transportation providers, and expertise in outsourced logistics services to deliver competitive advantage to each of its clients' supply chains.