Mullen Group Ltd. Secures Major Funding through Notes Offering

Mullen Group Ltd. Secures Major Funding through Notes Offering

In an impressive move, Mullen Group Ltd. has priced a significant private placement of senior secured notes, totaling approximately CAD$400 million. This announcement marks a pivotal moment for the company, headquartered in Alberta, as it gears up for future growth and expansion.

Details of the Notes Offering

The privately placed senior secured notes, also known as the 'Notes', are set to be guaranteed by Mullen Group's subsidiaries, MT Investments Inc. and MGL Holding Co. Ltd. This offering will secure a first-ranking charge over all current and future assets of the Corporation and its Guarantors. Notably, the secured notes will hold a parity status with Mullen Group's existing notes that mature in July 2034, along with its bank credit facilities.

Terms of the Senior Secured Notes

With a maturity date of July 10, 2037, the Notes will consist of two principal amounts: US$50 million with a yield of 6.91% per annum and CAD$325 million with a yield of 6.04% per annum. The interest on these notes will initiate from the date of issue and will be payable semi-annually on June 7 and December 7, beginning on December 7, 2025.

Strategic Use of Proceeds

Mullen Group plans to utilize the net proceeds from this offering to repay its existing private placement debt due in October 2026. Additionally, the capital will support general corporate purposes, fueling the company's ongoing growth initiatives.

Statements from Leadership

Expressing optimism, Mr. Murray K. Mullen, Chair and Senior Executive Officer, said, "Today, we've successfully finalized another note private placement offering with long-term investors, enhancing our liquidity to fund future growth. This financial maneuver allows us to prepay the private placement notes due in 2026 and further pursue strategic acquisitions. It's particularly satisfying against the backdrop of recent economic uncertainties influenced by tariffs and trade dynamics."

Compliance and Investment Considerations

The Notes Offering has been structured as a private placement, adhering to necessary legal frameworks. This means it will only be accessible to institutional accredited investors as defined under the Securities Act of 1933. It is crucial to note that the securities have not been registered under any securities laws, limiting their offer and sale within specific jurisdictions.

Investment Caveats

It should be understood that this announcement does not constitute an offer or solicitation for the sale or purchase of the Notes in any jurisdiction where it would be unlawful. Mullen Group does not intend to register the securities under applicable laws in the future, nor will they qualify for public distribution in Canada.

About Mullen Group Ltd.

Mullen Group has built a reliable reputation as a prominent company in the transportation and logistics sectors. With a rich history of acquisitions, the company operates a wide array of logistics services across North America, offering everything from truckload transportation to specialized energy and environmental services. This diverse portfolio has positioned Mullen Group as a key player in the industry, supporting various sectors such as energy, mining, and forestry.

Company Performance and Future Outlook

Listed on the Toronto Stock Exchange under the symbol 'MTL', Mullen Group continues to track significant performance metrics. The company’s comprehensive services encompass less-than-truckload, oversized hauling, and third-party logistics, ensuring a robust avenue for growth and market penetration. The ongoing focus on strategic acquisitions aligns well with the company’s long-term goals.

Contact Information

For inquiries, please reach out to: Mr. Murray K. Mullen - Chair, Senior Executive Officer and President
Mr. Richard J. Maloney - Senior Operating Officer
Mr. Carson P. Urlacher - Senior Financial Officer
Ms. Joanna K. Scott - Senior Corporate Officer

Address: 121A - 31 Southridge Drive, Okotoks, Alberta, Canada T1S 2N3
Telephone: 403-995-5200
Fax: 403-995-5296

Frequently Asked Questions

What is the purpose of Mullen Group's recent notes offering?

The notes offering aims to prepay existing private placement debt and support general corporate growth strategies.

How much has Mullen Group raised through the notes offering?

Mullen Group has priced approximately CAD$400 million through this notes offering.

What are the yields associated with the senior secured notes?

The notes are offered with yields of 6.91% per annum for US$50 million and 6.04% per annum for CAD$325 million.

Who are the key executives at Mullen Group?

Key executives include Mr. Murray K. Mullen (Chair), Mr. Richard J. Maloney (Senior Operating Officer), and Mr. Carson P. Urlacher (Senior Financial Officer).

On what exchange is Mullen Group listed?

Mullen Group is listed on the Toronto Stock Exchange under the ticker symbol 'MTL'.

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