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Quest Resource Holding Corporation Announces Successful Completion of Debt Refinancing
QRHCQuest Resource (QRHC) Newsfilter·2024-12-30 21:00

Core Viewpoint - Quest Resource Holding Corporation has successfully completed its refinancing process, amending its financing agreements with Monroe Capital Management Advisors and PNC Bank, which strengthens its balance sheet and supports long-term growth strategies [1][2][6]. Financing Agreements Summary - The amended credit agreement with Monroe Capital includes a 54millionaggregateprincipalamountoftermloan,anextendedmaturitydatetoJune2030,andareducedinterestrateofSOFRplus450to550basispoints,reflectingamarginreductionof100to200basispointsfromthepreviousagreement[8].−TheamendedcreditagreementwithPNCBankfeaturesanincreasedrevolvercommitmentfrom54 million aggregate principal amount of term loan, an extended maturity date to June 2030, and a reduced interest rate of SOFR plus 450 to 550 basis points, reflecting a margin reduction of 100 to 200 basis points from the previous agreement [8]. - The amended credit agreement with PNC Bank features an increased revolver commitment from 35 million to 45million,anextendedmaturitydatetoDecember2029,andareducedinterestrateofSOFRplus200basispoints,reflectingamarginreductionof25basispointsfromthepreviousagreement[9].CompanyOverview−Questisanationalproviderofwasteandrecyclingservices,helpinglargerbusinessesachievetheirenvironmentalandsustainabilitygoalsthroughtailoredsolutionsthatgeneratemeasurableresults[3].−Thecompanyoffersexpertiseacrossmultipleindustrysectors,providingdataandinformationthattrackenvironmentalresultsandimprovebusinessoperations[3].LeadershipInsights−ThePresidentandCEOhighlightedthebenefitsoftherefinancing,includingasubstantialreductionininterestexpensesandimprovedterms,whichreflectthecompany′sstrongcreditprofileandbusinessmodel[2].−TheChairmanoftheBoardnotedthatthenewlendingpackagewilldecreasetheblendedinterestratemarginbyabout150basispoints,resultinginanannualreductionofapproximately45 million, an extended maturity date to December 2029, and a reduced interest rate of SOFR plus 200 basis points, reflecting a margin reduction of 25 basis points from the previous agreement [9]. Company Overview - Quest is a national provider of waste and recycling services, helping larger businesses achieve their environmental and sustainability goals through tailored solutions that generate measurable results [3]. - The company offers expertise across multiple industry sectors, providing data and information that track environmental results and improve business operations [3]. Leadership Insights - The President and CEO highlighted the benefits of the refinancing, including a substantial reduction in interest expenses and improved terms, which reflect the company's strong credit profile and business model [2]. - The Chairman of the Board noted that the new lending package will decrease the blended interest rate margin by about 150 basis points, resulting in an annual reduction of approximately 1 million in interest expenses [6]. - The CFO expressed appreciation for the support from PNC and Monroe, emphasizing their confidence in the company's future [7].