The Cudahy, Wis.-based asset-light transportation and logistics services provider received a $540 million redeemable preferred stock investment from affiliates of private investment firm Elliott Management.
Roadrunner Transportation Systems, Inc. received a $540 million redeemable preferred stock investment from affiliates of private investment firm Elliott Management, the company said.
Elliott Management is an existing holder of about 8.6 percent of Roadrunner’s common shares.
Proceeds from the investment were used to pay off and terminate Roadrunner’s senior credit facility and to provide working capital to support the company’s current operations and future growth.
Roadrunner expects that about $240 million of the investment will soon be replaced with a new asset-based lending (ABL) facility with a group of commercial lenders, which may include members of the company’s previous bank group.
In addition, the Cudahy, Wis.-based asset-light transportation and logistics services provider is reshuffling its top management team. Roadrunner’s new executive management team consists of:
• CEO Curt Stoelting;
• President and Chief Operating Officer Mike Gettle;
• Chief Information Officer Scott Cousins;
• And General Council and Chief Compliance Officer Bob Milane.
The company said it also expects to hire a new chief financial officer in the near future. Former CEO Mike DiBlasi will serve on an interim basis as vice chairman of the board.
The latest news comes after Roadrunner in January uncovered errors in its financial accounting dating back to the full year in 2014. Looking ahead, Roadrunner said it is in the final stages of completing its 2016 fourth quarter and restated prior period financial statements. These financial results, and the 2017 first quarter results, will be issued as soon as possible, the company said.
Roadrunner nabs new funding, reshuffles management
