Neovia Logistics Enters into Agreement with Lenders to Recapitalize Business and Strengthen Balance Sheet

IRVING, Texas--(BUSINESS WIRE)--Neovia Logistics (“Neovia” or the “Company”), a global supplier of logistics services, today announced that it has entered into an agreement with its lenders on the terms of a comprehensive recapitalization of the business and substantial deleveraging of the Company’s balance sheet through the equitization of approximately $420 million of debt. The transaction is subject to, and is expected to close following, completion of regulatory approval.

Under the terms of the agreement, an investor group led by funds managed by Oaktree Capital Management, L.P., Ares Management, and Vector Capital will exchange a portion of Neovia’s existing debt for a controlling ownership stake in the Company. In addition, the investor group will provide nearly $60 million of new money financing.

“With today’s announcement, we are taking a positive step to significantly reduce our debt and cash interest burden, strengthen our financial position and continue to build out our suite of services,” said Neovia CEO Chris Synek. “Our ability to reach this fully consensual agreement with our lenders is a tremendous achievement and reflects the confidence of our lenders in our business. Over the past several years, our team has worked tirelessly to grow our customer base and expand the solutions we offer to our customers. The global pandemic has disrupted supply chains around the world and as the recovery continues, we have taken the necessary actions to solidify our financial foundation and move forward as a stronger company and partner.”

Mr. Synek added, “By recapitalizing the business and substantially reducing our debt service costs, we will be able to invest in growing our business and provide greater value to customers. I want to thank our team members for their continued dedication to Neovia as we remain focused on helping our customers handle complex logistics needs.”

Davis Polk & Wardwell LLP is acting as legal counsel to Neovia, Centerview Partners LLC is acting as investment banker and Alvarez & Marsal is acting as financial advisors.

About Neovia Logistics

Neovia is a global leader in third-party logistics, operating more than 100 facilities in 20 countries across four continents. For over 30 years, Neovia has combined an OEM mindset with real-world innovation to partner with, and solve complex logistics challenges for, leading companies in the automotive, industrial, aerospace, and consumer products sectors.