Quarterhill Announces USD $60 Million Credit Facility and USD $100 Million Accordion to Strengthen Balance Sheet and Support Growth Initiatives

Quarterhill Inc. announced on May 12, 2026, the closing of a new US$60 million senior secured credit facility with U.S. Private Credit Investments (PCI), a division of BTG Pactual Global Alternatives. The facility is structured as a US$30 million initial term loan, a US$25 million delayed‑draw term loan, and a US$5 million revolving credit facility. It also includes an uncommitted US$100 million accordion earmarked for future inorganic growth and M&A. Proceeds will primarily be used to repay the company’s existing credit agreement, redeem all convertible debentures, and provide ongoing working capital. The loans mature on May 12, 2031. The release frames the refinancing as a move to strengthen the balance sheet, eliminate foreign‑exchange exposure, and create a capital‑flexible platform for acquisitions.

The transaction materially reduces near‑term financial risk. Quarterhill had just US$24.8 million in cash at year‑end 2025 against a backdrop of consistent net losses (FY 2025 net loss of $54.4 million, including a $31.4 million goodwill impairment). While the backlog stood at $404 million and adjusted EBITDA was nearing breakeven, the old credit agreement and convertible debentures likely presented a looming liquidity constraint. Replacing those obligations with a single, five‑year facility from a large global credit manager provides breathing room. The uncommitted US$100 million accordion, though not guaranteed, signals a strategic intent to pursue acquisitions that could accelerate growth in the intelligent‑transportation‑systems sector. The announcement does not, however, involve a first‑time investment by a noted strategic investor (Sprott, Lassonde, etc.) or a transformative takeover. It is a balance‑sheet restructuring that lowers risk and unlocks optionality, making it a solidly positive development.

Quarterhill Inc. is an Intelligent Transportation Systems (ITS) provider, operating primarily through its International Road Dynamics (IRD) subsidiary. It designs, installs, and maintains weigh‑in‑motion (WIM), virtual WIM, tolling, and electronic screening systems for state and federal transportation agencies. The company has no single flagship project; instead, it holds a portfolio of long‑term contracts with departments of transportation in California, Illinois, Indiana, Massachusetts, New Jersey, Washington, Arkansas, and multiple international jurisdictions (Kuwait, Thailand, South Korea, Cambodia). Recent contract values range from $2.3 million to $13 million, underscoring a broad, recurring‑revenue base. The company emphasizes AI‑powered solutions (ITHEIA™ video classification, machine‑learning tolling) and data‑driven freight management.