Mullen Group Ltd. Increases Bank Credit Facilities to $375.0 Million

OKOTOKS, AB, Jan. 8, 2024 /PRNewswire/ - (TSX: MTL) The Board of Directors of Mullen Group Ltd. ("Mullen Group", "We", "Our" and/or the "Corporation") is pleased to announce that it has entered into a new $125.0 million credit agreement (the "PNC Credit Facility") with PNC Bank Canada Branch ("PNC"). 

"Our relationship with PNC began in 2021 through the acquisition of HAUListic LLC. With the addition of PNC to our lending group we now have $375.0 million of borrowing capacity providing additional liquidity and balance sheet flexibility, ensuring we can adapt to changing market and economic conditions, including the volatile interest rate environment. It also enables us to pursue strategic acquisition opportunities, providing growth to our organization and creating value for our shareholders," said Mr. Carson P. Urlacher, Senior Accounting Officer.

The $375.0 million of borrowing capacity comes from three unsecured revolving demand credit facilities consisting of the PNC Credit Facility, a $100.0 million credit facility with Canadian Imperial Bank of Commerce (the "CIBC Credit Facility"), and a $150.0 million credit facility with Royal Bank of Canada (the "RBC Credit Facility (collectively, the "Bank Credit Facilities"). All of the material terms of the PNC Credit Facility are consistent with those under the CIBC Credit Facility and the RBC Credit Facility.

As at December 31, 2023, we had $73.0 million drawn on the CIBC Credit Facility and the RBC Credit Facility, a decrease of $41.2 million from the $114.2 million drawn at September 30, 2023. The addition of the PNC Credit Facility now provides Mullen Group with over $300.0 million of borrowing availability on our Bank Credit Facilities. 

The Bank Credit Facilities are available in, among other things, Canadian dollar loans, U.S. dollar loans and Canadian dollar banker's acceptances. Interest on the Bank Credit Facilities are based on either the Canadian bank prime rate plus 0.50 percent or U.S. bank base rate plus 0.50 percent, in each case payable monthly in arrears or banker's acceptance rates plus an acceptance fee of 1.50 percent payable upon acceptance.

The Bank Credit Facilities are unsecured although the Corporation's wholly owned subsidiary, MT Investments Inc., has granted an unlimited guarantee of any indebtedness owing on the Bank Credit Facilities. The Bank Credit Facilities are unsecured and uncommitted, and do not have any financial covenants although the Corporation cannot be in, and must provide notice of any, default of its obligations under any other credit agreement that it has entered into, and it must remain in compliance with certain reporting and general covenants customary for credit facilities of this nature.

Mullen Group is one of Canada's largest logistics providers. Our network of independently operated businesses provide a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized, third-party logistics and specialized hauling transportation. In addition, we provide a diverse set of specialized services related to the energy, mining, forestry and construction industries in western Canada, including water management, fluid hauling and environmental reclamation. The corporate office provides the capital and financial expertise, legal support, technology and systems support, shared services and strategic planning to its independent businesses.

Mullen Group is a publicly traded corporation listed on the Toronto Stock Exchange under the symbol "MTL". Additional information is available on our website at www.mullen-group.com or on the Corporation's issuer profile on SEDAR+ at www.sedarplus.ca.

Mr. Murray K. Mullen - Chair, Senior Executive Officer and President
Mr. Richard J. Maloney - Senior Operating Officer
Mr. Carson P. Urlacher - Senior Accounting Officer
Ms. Joanna K. Scott - Senior Corporate Officer

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

This news release may contain forward-looking statements that are subject to risk factors associated with the oil and natural gas business, the business of Mullen Group and the overall economy. Mullen Group believes that the expectations reflected in this news release are reasonable, but results may be affected by a variety of variables. In particular, forward-looking statements include but are not limited to the following: (i) PNC Credit Facility enabling Mullen Group to pursue strategic acquisition opportunities. These forward-looking statements are based on certain assumptions and analyses made by Mullen Group in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These assumptions include but are not limited to the following: (i) Mullen Group's view that there will be acquisition opportunities for Mullen Group that will provide growth to our organization and create value for our shareholders. The forward-looking information contained herein is made as of the date of this news release and Mullen Group disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable Canadian securities laws. Mullen Group relies on litigation protection for "forward-looking" statements.

SOURCE Mullen Group Ltd.

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