Quarterhill Secures $60M Credit Facility, Adds $100M Accordion for Growth Push
Event summary
- Quarterhill closes $60M senior secured credit facility with BTG Pactual's PCI division, including $30M term loan, $25M delayed draw, and $5M revolving credit.
- Facility matures May 12, 2031, secured by company assets with customary financial covenants.
- Additional $100M uncommitted accordion established for potential M&A opportunities.
- Proceeds to repay existing debt, redeem convertible debentures, and provide working capital.
- Transaction structured in USD to reduce foreign exchange exposure.
The big picture
This financing marks the culmination of Quarterhill's year-long strategy to reposition itself for growth, following its return to profitability. The USD-denominated structure reflects a strategic shift to mitigate FX risk while the accordion feature positions the company to capitalize on consolidation opportunities in the fragmented ITS market. With $10.9B in AUM, BTG Pactual's PCI brings significant financial firepower to support Quarterhill's ambitions in smart infrastructure solutions.
What we're watching
- M&A Execution
- Whether Quarterhill can deploy the $100M accordion effectively to acquire accretive assets in the ITS space.
- Balance Sheet Impact
- How the new capital structure will affect the company's financial flexibility and credit metrics.
- Growth Strategy
- The pace at which Quarterhill can transition from balance sheet strengthening to revenue-generating growth initiatives.