OKOTOKS, Alberta - Mullen (NASDAQ:MULN) Group Ltd., a Canadian logistics provider, has expanded its financial flexibility by increasing its total unsecured borrowing capacity to $375 million. This strategic move was facilitated through a new unsecured credit facility with PNC Bank valued at $125 million. The expansion of the credit facility is a significant step for Mullen Group (TSX:MTL) as it aims to strengthen its financial position.
The company has also managed to reduce its drawdowns on existing facilities with the Canadian Imperial Bank of Commerce ( CIBC (TSX:CM)) and the Royal Bank of Canada (TSX:RY) (RBC) by $41.2 million. As a result, the total amount drawn as of December 31, 2023, stands at $73 million.
The terms of the borrowing stipulate that the interest on the loans is contingent on the Canadian prime rate or the U.S. base rate, with an additional margin of 0.50%. Borrowers are required to make monthly interest payments. Furthermore, when opting for banker's acceptances, there is an extra fee of 1.50%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.