Staffing 360 Solutions Announces Successful Completion of Debt Restructuring - Strengthens Financial Outlook
October 27 2020 - 08:36AM
Staffing 360 Solutions, Inc. (NASDAQ: STAF), a company executing an
international buy-integrate-build strategy through the acquisition
of staffing organizations in the United States and the United
Kingdom, today announced that it has successfully completed the
restructuring of its senior secured debt agreement with Jackson
Investment Group, LLC which includes a two-year extension on its
$35.7 million loan, and an extension of its $25 million credit
facility with MidCap Funding IV Trust.
Brendan Flood, Chairman and Chief Executive
Officer said, “I am very pleased that we have been able to
strengthen our financial position and provide considerable
flexibility with this two-year extension of our existing senior
debt with Jackson Investment Group. We have reduced the cash
outflow related with this financing by 50% from the previous
facility. We will further reduce $1 million in interest expense in
the first six months and move out for two years the conversion of
the preferred shares. The length of the extension period is
significant as it provides us with a considerable runway in which
to refinance the loan and/or our total debt prior to its
maturity.
“Overall business continues to improve
week-over-week and we expect to be back to pre-COVID levels by the
end of the year. We have applied for full forgiveness of the $19.4
million Cares Act PPP stimulus loan and are optimistic that we will
be granted forgiveness. Our Company has already benefited from the
many operational adjustments made, which have resulted in $5.2
million in cost savings,” Flood
continued.
“We expect that, as the pandemic-related impact
to our business continues to ease, Staffing 360 will gain new
heights. Our ability to complete a more attractive refinancing in
2021 will provide us even greater flexibility for both organic
growth and M&A-driven expansion in the future,” concluded
Flood.
For additional information regarding the
restructuring of the Company’s debt with Jackson Investment Group
and MidCap Funding IV Trust please refer to the Company’s Current
Report on Form 8-K filed with the U.S. Securities and Exchange
Commission on October 27, 2020.
About Staffing 360 Solutions,
Inc.Staffing 360 Solutions, Inc. is engaged in the
execution of an international buy-integrate-build strategy through
the acquisition of domestic and international staffing
organizations in the United States and United Kingdom. The
Company believes that the staffing industry offers opportunities
for accretive acquisitions that will drive its annual revenues to
$500 million. As part of its targeted consolidation model, the
Company is pursuing acquisition targets in the finance and
accounting, administrative, engineering, IT, and Light Industrial
staffing space. For more information, please
visit: www.staffing360solutions.com. Follow Staffing 360
Solutions
on Facebook, LinkedIn and Twitter.
Forward-Looking StatementsThis
press release contains forward-looking statements, which may be
identified by words such as "expect," "look forward to,"
"anticipate" "intend," "plan," "believe," "seek," "estimate,"
"will," "project" or words of similar meaning. Although
Staffing 360 Solutions, Inc. believes such forward-looking
statements are based on reasonable assumptions, it can give no
assurance that its expectations will be attained. Actual
results may vary materially from those expressed or implied by the
statements herein, including the goal of achieving annualized
revenues of $500 million, the Company’s ability to successfully
raise sufficient capital on reasonable terms or at all, to
consummate additional acquisitions, to successfully integrate newly
acquired companies, to organically grow its business, to
successfully defend potential future litigation, to successfully
refinance its debt, and to receive loans under the US Main Street
Lending Program, changes in local or national economic conditions,
the ability to comply with contractual covenants, including in
respect of its debt, as well as various additional risks, many of
which are now unknown and generally out of the Company’s control,
and which are detailed from time to time in reports filed by the
Company with the SEC, including quarterly reports on Form 10-Q,
reports on Form 8-K and annual reports on Form 10-K. Staffing
360 Solutions does not undertake any duty to update any statements
contained herein (including any forward-looking statements), except
as required by law.
Investor Relations Contacts: |
|
Harvey Bibicoff, CEOBibicoff + MacInnis, Inc.818-379-8500 x1
harvey@bibimac.com |
Terri MacInnis, VP of IRBibicoff + MacInnis, Inc.818-379-8500 x2
terri@bibimac.com |
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