Staffing 360 Solutions Announces Successful Completion of Debt Restructuring – Strengthens Financial Outlook
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.
HR Technology News: ACL Digital Partners With Workplace From Facebook To Revolutionize Enterprise-Wide Communications
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.
HR Technology News: Critical Links Revolutionize The E-Learning Process Releasing C3 Micro-Cloud Version 4.5
“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.