Company estimates savings on interest and principal payments to be over $ 300,000 per month
HOUSTON, TX, Nov 5, 2021 (GLOBE NEWSWIRE) – via NewMediaWire – SMG Industries, Inc. (“SMG” or the “Company”) (SMGI, Financial), a growth-oriented transportation services company focused on the domestic infrastructure logistics market, today announced that it has refinanced its higher-cost senior secured equipment debt initially established in February 2020 in connection with the financing of the acquisition of the 5J transport group.
The first tranche of this funding was $ 6.40 million funded on September 7, 2021, as disclosed in the Company’s previous current report on Form 8-K pursuant to the terms of a promissory note (“Note”). The second and final tranche funded $ 6.34 million (for a total of $ 12.74 million) on November 1, 2021.
Under the terms of the Note, the Company will pay interest only monthly until October 1, 2022 and principal and interest thereafter over the remaining term until September 7, 2026 (the “Maturity Date”). The ticket can be prepaid at any time without penalty.
The source of funds came mainly from existing stakeholders, including family offices that have been active within the Company for more than a year.
Mr. Allen R. Parrott, Chief Financial Officer of SMG, said: “The refinancing of our senior secured term debt will save the Company approximately $ 324,000 per month in cash flow in the first year. only. We are happy to have this cheaper term debt with more favorable terms. The company can now work more flexibly to optimize its fleet of equipment, including possibly adding more deck girder trailers, as the infrastructure logistics market appears to be strengthening. “
The company currently plans to release a current report on Form 8-K later this week for more details on completing its funding.
About SMG Industries, Inc .: SMG Industries is a growth-oriented transportation services company focused on the national infrastructure logistics market. Through several of the company’s wholly owned subsidiaries under the name “5J Transportation Group”, it provides heavy haul, super heavy haul, platform, brokerage and aircraft mobilization services. drilling. Authorized 5J dimensional works can support loads of up to 500,000 pounds, including cargo associated with wind power, power generation components, bridge beams, compressors and refinery equipment and of construction. SMG Industries, Inc., headquartered in Houston, Texas, also has facilities in Floresville, Hempstead, Henderson, Odessa, Palestine, and Victoria, Texas. Learn more at www.SMGIndustries.com.
Source: SMG Industries, Inc. + 1-713-955-3497