STAF - Staffing 360 Solution rallies on closing of debt restructuring

Staffing 360 Solutions (STAF) +26.2% PM, completed the restructuring of its senior secured debt agreement with Jackson Investment Group; includes a two-year extension on its $35.7M loan, and an extension of its $25M credit facility with MidCap Funding IV Trust."We have reduced the cash outflow related with this financing by 50% from the previous facility. We will further reduce $1M in interest expense in the first six months and move out for two years the conversion of the preferred shares," chairman & CEO Brendan Flood commented.Extension period length is important as it provides with a considerable runway in which to refinance the loan and/or our total debt prior to its maturity.The company has applied for full forgiveness of the $19.4M Cares Act PPP stimulus loan; already benefited from the many operational adjustments made, which have resulted in $5.2M in cost savings.

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Staffing 360 Solution rallies on closing of debt restructuring