LONG BEACH, Calif., June 27, 2011 (GLOBE NEWSWIRE) -- UTi Worldwide (Nasdaq:UTIW) today announced that it has successfully issued $150 million (principal amount) of senior unsecured guaranteed notes, amended and extended two of its existing letter of credit facilities and entered into a new revolving credit facility.
The new notes were issued in a private offering, bear a fixed rate of interest of 3.67 percent per annum and amortize semi-annually beginning February 2014 through maturity in August 2018. Certain other terms of the notes are similar to those under the company's existing senior unsecured guaranteed notes which it issued in July 2009 and which mature August 2014. A portion of the proceeds from the new notes was used to pay the approximately $33.3 million of principal amount remaining outstanding under the company's unsecured notes issued in 2006, which notes had a July 9, 2011 termination date.
The company also announced that it has amended and restated its existing letter of credit facility with Nedbank Limited, acting through its London branch ("Nedbank"), and its letter of credit facility with the Royal Bank of Scotland ("RBS"). The amended and restated letter of credit and cash draw facility with Nedbank provides for a $40.0 million committed standby letter of credit facility (which according to the agreement may be increased by the parties in the future by up to an additional $35.0 million), and a $35.0 million cash draw facility. The amended and restated letter of credit facility with RBS provides for an uncommitted availability for letters of credit of up to $50.0 million. At the same time, UTi entered into a new unsecured revolving credit facility with Bank of the West that provides for up to $50.0 million of availability for both cash draws and letters of credit
Additional information concerning 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. For more information, please go to www.go2uti.com/" target="_top" rel="nofollow">www.go2uti.com.
Safe Harbor Statement
Certain statements in this news release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The company intends that all such statements be subject to the "safe-harbor" provisions contained in those sections. Such forward-looking statements may include, but are not limited to, the statements about the future impact of the company's new credit facilities and notes issuance. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward-looking statements, including but not limited to the economic volatility that has materially impacted trade volumes, transportation capacity, pricing dynamics and overall margins; the financial condition of many of the company's customers; planned or unplanned consequences of the company's sales initiatives, procurement initiatives and business transformation efforts; the demand for the company's services; the impact and related costs associated with reorganization efforts and/or cost reduction measures undertaken by the company; increased competition; the impact of volatile fuel costs and changes in foreign exchange rates; changes in the company's effective tax rates; industry consolidation making it more difficult to compete against larger companies; general economic, political and market conditions, including those in Africa, Asia and EMENA; work stoppages or slowdowns or other material interruptions in transportation services; risks of international operations; risks associated with, and costs and expenses the company will incur as a result of, the ongoing publicly announced U.S. Department of Justice and other governmental investigations into the pricing practices of the air cargo transportation industry and other similar or related investigations and lawsuits; disruptions caused by epidemics, natural disasters, conflicts, wars and terrorism; and the other risks and uncertainties described in "Risk Factors" and "Forward-looking Statements" in the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and described in the company's other filings with the Securities and Exchange Commission. Although UTi believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, the company cannot assure the reader that the results contemplated in forward-looking statements will be realized in the timeframe anticipated or at all. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by UTi or any other person that UTi's objectives or plans will be achieved. Accordingly, investors are cautioned not to place undue reliance on the company's forward-looking statements. UTi undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.