[sheet: Closing Checklist]

Item No.	Category	Document / Deliverable Description	Parties / Signatories	Responsible Party	Target Date	Actual Date Completed	Status	Notes / Comments
1	Core Transaction Agreements	Mezzanine Credit Agreement — Execution version, dated September 14, 2023, among Stonefield Logistics Group Inc. as Borrower, Ridgeline Mezzanine Capital Fund III, LP as Mezzanine Lender, and the Guarantors party thereto. $120,000,000 mezzanine term loan; 1100 bps (850 cash / 250 PIK); maturity September 29, 2029; New York law.	Stonefield Logistics Group Inc.; Ridgeline Mezzanine Capital Fund III, LP; Cascade Ridge SLG Holdings, LLC; Stonefield Intermodal Services, Inc.; Stonefield Fleet Management, LLC; Stonefield Freight Brokerage, Inc.	Calderwood & Harkness LLP / Archer Blackwell & Moss LLP	September 14, 2023	September 14, 2023	Completed	Signed at signing; effective upon closing and funding.
2	Core Transaction Agreements	Intercreditor Agreement — Execution version, dated September 14, 2023, among Whitmore National Bank, N.A. as Senior Agent, Ridgeline Mezzanine Capital Fund III, LP as Mezzanine Lender, and acknowledged by Stonefield Logistics Group Inc. Lien subordination, 180-day standstill, payment blockage, purchase option.	Whitmore National Bank, N.A.; Ridgeline Mezzanine Capital Fund III, LP; Stonefield Logistics Group Inc. (acknowledgment)	Calderwood & Harkness LLP / Renshaw Pratt LLP / Archer Blackwell & Moss LLP	September 14, 2023	September 14, 2023	Completed	Governs senior/mezzanine intercreditor rights. New York law.
3	Core Transaction Agreements	Mezzanine Guaranty Agreement — Execution version, dated September 14, 2023, by Cascade Ridge SLG Holdings, LLC, Stonefield Intermodal Services, Inc., Stonefield Fleet Management, LLC, and Stonefield Freight Brokerage, Inc. in favor of Ridgeline Mezzanine Capital Fund III, LP.	Cascade Ridge SLG Holdings, LLC; Stonefield Intermodal Services, Inc.; Stonefield Fleet Management, LLC; Stonefield Freight Brokerage, Inc.; Ridgeline Mezzanine Capital Fund III, LP	Calderwood & Harkness LLP / Archer Blackwell & Moss LLP	September 14, 2023	September 14, 2023	Completed	New York law.
4	Core Transaction Agreements	Mezzanine Pledge and Security Agreement — Execution version, dated September 14, 2023, granting Ridgeline Mezzanine Capital Fund III, LP a second-priority perfected security interest in substantially all assets of Stonefield and subsidiary guarantors (equipment, vehicles, rolling stock, accounts receivable, inventory, IP, subsidiary equity interests).	Stonefield Logistics Group Inc.; Stonefield Intermodal Services, Inc.; Stonefield Fleet Management, LLC; Stonefield Freight Brokerage, Inc.; Ridgeline Mezzanine Capital Fund III, LP	Calderwood & Harkness LLP / Archer Blackwell & Moss LLP	September 14, 2023	September 14, 2023	Completed	Second-priority lien on shared collateral. New York law.
5	Core Transaction Agreements	Parent Equity Pledge Agreement — Execution version, dated September 14, 2023, by Cascade Ridge SLG Holdings, LLC pledging 100% of equity interests in Stonefield Logistics Group Inc. to Ridgeline Mezzanine Capital Fund III, LP on a first-priority basis (not shared with senior facility).	Cascade Ridge SLG Holdings, LLC; Ridgeline Mezzanine Capital Fund III, LP	Calderwood & Harkness LLP / Archer Blackwell & Moss LLP	September 14, 2023	September 14, 2023	Completed	First-priority pledge; exclusive to mezzanine. New York law.
6	Core Transaction Agreements	Warrant Agreement — Execution version, dated September 29, 2023, between Stonefield Logistics Group Inc. and Ridgeline Mezzanine Capital Fund III, LP. 3.0% warrant coverage of fully-diluted equity (post-exercise basis); $0.01/share exercise price; detachable; immediately exercisable; weighted-average broad-based anti-dilution; put right on change of control, IPO, or 7th anniversary (September 29, 2030) at FMV.	Stonefield Logistics Group Inc.; Ridgeline Mezzanine Capital Fund III, LP	Calderwood & Harkness LLP / Archer Blackwell & Moss LLP	September 29, 2023	September 29, 2023	Completed	Delivered at closing.
7	Core Transaction Agreements	Registration Rights Agreement — Execution version, dated September 29, 2023, between Stonefield Logistics Group Inc. and Ridgeline Mezzanine Capital Fund III, LP. Demand and piggyback registration rights for shares issuable upon warrant exercise.	Stonefield Logistics Group Inc.; Ridgeline Mezzanine Capital Fund III, LP	Calderwood & Harkness LLP / Archer Blackwell & Moss LLP	September 29, 2023	September 29, 2023	Completed	Delivered at closing.
8	Senior Facility Amendment / Consent	Amendment No. 3 to Amended and Restated Senior Credit Agreement (originally dated November 15, 2019, as amended and restated April 7, 2022) — Execution version, dated September 14, 2023. Permits incurrence of $120,000,000 mezzanine indebtedness, grants second-lien on shared collateral, authorizes Intercreditor Agreement.	Stonefield Logistics Group Inc.; Whitmore National Bank, N.A. (Admin. Agent & Collateral Agent); Greystone Commercial Lending Corp.; Heritage Pacific Bank; Clearfield Capital Finance, LLC	Calderwood & Harkness LLP / Renshaw Pratt LLP	September 14, 2023	September 14, 2023	Completed	Senior Agent amendment fee of $137,500 ($275M × 0.05%) payable at mezzanine closing.
9	Senior Facility Amendment / Consent	Senior Agent Consent Letter — Dated September 5, 2023, from Whitmore National Bank, N.A. consenting to mezzanine incurrence, Intercreditor Agreement, and second-priority liens, subject to Amendment No. 3 and Intercreditor Agreement execution.	Whitmore National Bank, N.A.	Calderwood & Harkness LLP (prepared for Whitmore execution)	September 5, 2023	September 5, 2023	Completed	Consent received as anticipated.
10	Closing Certificates — Borrower	Officer's Certificate of Stonefield Logistics Group Inc. (Closing Conditions) — Dated September 29, 2023. Certifies satisfaction of conditions precedent to funding: accuracy of representations and warranties, no default or event of default, no material adverse change.	Marcus W. Ellison (CEO); Janet R. Prescott (CFO)	Calderwood & Harkness LLP (draft); Stonefield (execution)	September 29, 2023	September 29, 2023	Completed
11	Closing Certificates — Borrower	Secretary's Certificate of Stonefield Logistics Group Inc. — Dated September 29, 2023. Attaches certified copies of certificate of incorporation, bylaws, board resolutions authorizing mezzanine financing, and incumbency certificate of authorized officers.	Robert D. Nagamine (General Counsel & Secretary)	Calderwood & Harkness LLP (draft); Stonefield (execution)	September 29, 2023	September 29, 2023	Completed	Delaware corporation; EIN: 84-3217650.
12	Closing Certificates — Subsidiary Guarantors	Secretary's Certificate of Subsidiary Guarantors (Combined) — Dated September 29, 2023. Covers Stonefield Intermodal Services, Inc. (TX corp., EIN: 75-6849321), Stonefield Fleet Management, LLC (TX LLC, EIN: 75-6912488), and Stonefield Freight Brokerage, Inc. (DE corp., EIN: 84-3306715). Attaches organizational documents, authorizing resolutions, and incumbency.	Authorized officer/manager of each subsidiary guarantor	Calderwood & Harkness LLP (draft); Stonefield (execution)	September 29, 2023	September 29, 2023	Completed
13	Closing Certificates — Financial	Solvency Certificate — Dated September 29, 2023. Executed by Janet R. Prescott (CFO). Certifies solvency of Stonefield and subsidiaries on a consolidated basis after giving effect to $120,000,000 mezzanine financing. Total funded debt at closing: $407,000,000; LTM Adjusted EBITDA: $108,600,000.	Janet R. Prescott (CFO)	Calderwood & Harkness LLP (draft); Stonefield (execution)	September 29, 2023	September 29, 2023	Completed
14	Closing Certificates — Financial	Initial Compliance Certificate — Dated September 29, 2023. Calculates LTM financial covenant levels: Total Leverage 3.75x (max 4.25x); Fixed Charge Coverage Ratio (min 1.10x); Liquidity (min $15,000,000); CapEx (max $85,000,000/year). Based on LTM Adjusted EBITDA of $108,600,000.	Janet R. Prescott (CFO)	Calderwood & Harkness LLP (draft); Stonefield (execution)	September 29, 2023	September 29, 2023	Completed	All covenants in compliance at closing.
15	Funding / Borrowing	Borrowing Request / Funding Notice — Dated September 26, 2023. Irrevocable request from Stonefield to Ridgeline requesting funding of $120,000,000 on September 29, 2023. Specifies wire instructions; certifies satisfaction of conditions precedent.	Stonefield Logistics Group Inc.	Calderwood & Harkness LLP (draft); Stonefield (execution)	September 26, 2023	September 26, 2023	Completed	Delivered three business days prior to closing.
16	Funding / Funds Flow	Closing Funds Flow Memorandum — Dated September 29, 2023. Details disbursement of $120,000,000: Commitment fee $2,400,000 to Ridgeline; Financial advisory fee $900,000 to Zynvaro Thornton Advisory Group, LLC; C&H fees $675,000; Vireo Group fees $450,000; Senior Agent amendment fee $137,500 to Whitmore National Bank, N.A.; Net proceeds to Stonefield. Wire instructions for each recipient. Total transaction costs: $4,562,500.	All parties	Calderwood & Harkness LLP	September 29, 2023	September 29, 2023	Completed	Approved by all parties prior to closing.
17	Legal Opinions	Calderwood & Harkness Borrower's Counsel Opinion Letter — Dated September 29, 2023. Addressed to Ridgeline Mezzanine Capital Fund III, LP. Covers: due organization and good standing (Stonefield and each guarantor); corporate authority; due authorization and execution; enforceability (subject to customary qualifications); no conflicts with organizational documents or applicable law; no required governmental consents. New York and Delaware law opinion.	Calderwood & Harkness LLP	Calderwood & Harkness LLP (Stephanie Okafor)	September 29, 2023	September 29, 2023	Completed
18	Legal Opinions	Calderwood & Harkness UCC/Lien Perfection Opinion — Dated September 29, 2023. Addressed to Ridgeline Mezzanine Capital Fund III, LP. Covers creation, attachment, and perfection of second-priority security interests under Mezzanine Pledge and Security Agreement and first-priority security interests under Parent Equity Pledge Agreement, upon filing of UCC-1 financing statements in Delaware and Texas.	Calderwood & Harkness LLP	Calderwood & Harkness LLP (Stephanie Okafor)	September 29, 2023	September 29, 2023	Completed
19	UCC Filings / Perfection	UCC-1 Financing Statement (Delaware — Mezzanine) — Filed September 29, 2023 with Delaware Secretary of State. Secured Party: Ridgeline Mezzanine Capital Fund III, LP. Debtor: Stonefield Logistics Group Inc. Second-priority security interest in substantially all assets.	Ridgeline Mezzanine Capital Fund III, LP (Secured Party); Stonefield Logistics Group Inc. (Debtor)	Calderwood & Harkness LLP (preparation and filing)	September 29, 2023	September 29, 2023	Completed	Filing confirmation received.
20	UCC Filings / Perfection	UCC-1 Financing Statement (Texas — Mezzanine) — Filed September 29, 2023 with Texas Secretary of State. Secured Party: Ridgeline Mezzanine Capital Fund III, LP. Debtors: Stonefield Intermodal Services, Inc.; Stonefield Fleet Management, LLC. Second-priority security interest in substantially all assets of Texas subsidiary guarantors.	Ridgeline Mezzanine Capital Fund III, LP (Secured Party); Stonefield Intermodal Services, Inc. and Stonefield Fleet Management, LLC (Debtors)	Calderwood & Harkness LLP (preparation and filing)	September 29, 2023	September 29, 2023	Completed	Filing confirmation received.
21	UCC Filings / Perfection	UCC Lien Search Summary Memorandum — Dated September 12, 2023. Pre-closing lien searches in Delaware and Texas for Stonefield and each subsidiary guarantor. Confirms existing senior UCC-1 filings by Whitmore National Bank, N.A. as Collateral Agent. No competing or unexpected liens identified.	N/A (internal memorandum)	Lisa Morrow / Daniel Obi — Calderwood & Harkness LLP	September 12, 2023	September 12, 2023	Completed	Recommended proceeding with mezzanine UCC-1 filings.
22	UCC Filings / Perfection	UCC-1 Financing Statement (Delaware — Stonefield Freight Brokerage, Inc.) — Filed September 29, 2023 with Delaware Secretary of State. Secured Party: Ridgeline Mezzanine Capital Fund III, LP. Debtor: Stonefield Freight Brokerage, Inc. Second-priority security interest.	Ridgeline Mezzanine Capital Fund III, LP (Secured Party); Stonefield Freight Brokerage, Inc. (Debtor)	Calderwood & Harkness LLP (preparation and filing)	September 29, 2023	September 29, 2023	Completed	SFB organized in Delaware; filing in DE Secretary of State.
23	Good Standing Certificates	Certificate of Good Standing — Stonefield Logistics Group Inc. — Delaware Secretary of State	Stonefield Logistics Group Inc.	Calderwood & Harkness LLP (order)	September 29, 2023	September 27, 2023	Completed	Dated within 10 days of closing.
24	Good Standing Certificates	Certificate of Good Standing — Stonefield Logistics Group Inc. — Texas Secretary of State (foreign qualification)	Stonefield Logistics Group Inc.	Calderwood & Harkness LLP (order)	September 29, 2023	September 27, 2023	Completed

25	Good Standing Certificates	Certificate of Good Standing — Cascade Ridge SLG Holdings, LLC — Delaware Secretary of State	Cascade Ridge SLG Holdings, LLC	Calderwood & Harkness LLP (order)	September 29, 2023	September 27, 2023	Completed	EIN: 84-3195472.
26	Good Standing Certificates	Certificate of Good Standing — Stonefield Intermodal Services, Inc. — Texas Secretary of State	Stonefield Intermodal Services, Inc.	Calderwood & Harkness LLP (order)	September 29, 2023	September 27, 2023	Completed
27	Good Standing Certificates	Certificate of Good Standing — Stonefield Fleet Management, LLC — Texas Secretary of State	Stonefield Fleet Management, LLC	Calderwood & Harkness LLP (order)	September 29, 2023	September 27, 2023	Completed
28	Good Standing Certificates	Certificate of Good Standing — Stonefield Freight Brokerage, Inc. — Delaware Secretary of State	Stonefield Freight Brokerage, Inc.	Calderwood & Harkness LLP (order)	September 29, 2023	September 27, 2023	Completed
29	Insurance / Miscellaneous	Evidence of Insurance — Certificates of insurance for Stonefield and subsidiaries naming Ridgeline Mezzanine Capital Fund III, LP as additional insured / loss payee as applicable	Stonefield Logistics Group Inc.	Stonefield (procurement); Calderwood & Harkness LLP (review)	September 29, 2023	September 28, 2023	Completed
30	Insurance / Miscellaneous	Registered Agent Confirmation — Pinnacle Corporate Services, Inc., 1209 Orange Street, Wilmington, Delaware 19801 (registered agent for Stonefield in Delaware)	Pinnacle Corporate Services, Inc.	Calderwood & Harkness LLP	September 29, 2023	September 25, 2023	Completed
31	Fees and Expenses	Payment of Commitment Fee — $2,400,000 ($120,000,000 × 2.00%) to Ridgeline Mezzanine Capital Fund III, LP	Stonefield Logistics Group Inc. (payor); Ridgeline Mezzanine Capital Fund III, LP (payee)	Per Funds Flow Memorandum	September 29, 2023	September 29, 2023	Completed	Netted from funding proceeds per funds flow.
32	Fees and Expenses	Payment of Financial Advisory Fee — $900,000 ($120,000,000 × 0.75%) to Zynvaro Thornton Advisory Group, LLC	Stonefield Logistics Group Inc. (payor); Zynvaro Thornton Advisory Group, LLC (payee)	Per Funds Flow Memorandum	September 29, 2023	September 29, 2023	Completed	Wire to 2200 Ross Avenue, Suite 3600, Dallas, TX 75201.
33	Fees and Expenses	Payment of Borrower's Counsel Fees — $675,000 (fee cap) plus disbursements to Calderwood & Harkness LLP	Stonefield Logistics Group Inc. (payor); Calderwood & Harkness LLP (payee)	Per Funds Flow Memorandum	September 29, 2023	September 29, 2023	Completed	Wire to 601 Lexington Avenue, New York, NY 10022.
34	Fees and Expenses	Payment of Lender's Counsel Expense Reimbursement — $450,000 (cap) plus disbursements to Archer Blackwell & Moss LLP	Stonefield Logistics Group Inc. (payor); Archer Blackwell & Moss LLP (payee)	Per Funds Flow Memorandum	September 29, 2023	September 29, 2023	Completed	Wire to 1585 Broadway, 34th Floor, New York, NY 10036.
35	Fees and Expenses	Payment of Senior Agent Consent/Amendment Fee — $137,500 ($275,000,000 × 0.05%) to Whitmore National Bank, N.A.	Stonefield Logistics Group Inc. (payor); Whitmore National Bank, N.A. (payee)	Per Funds Flow Memorandum	September 29, 2023	September 29, 2023	Completed	Wire to 350 Park Avenue, New York, NY 10022.
36	Closing Deliverables — Miscellaneous	Closing Checklist — Final version, dated September 29, 2023	N/A	Daniel Obi / Lisa Morrow — Calderwood & Harkness LLP	September 29, 2023	September 29, 2023	Completed	This document. Matter No. 1012-00001.
37	Closing Deliverables — Miscellaneous	Certified copy of Stonefield certificate of incorporation (Delaware)	Stonefield Logistics Group Inc.	Calderwood & Harkness LLP	September 29, 2023	September 29, 2023	Completed	Attached to Secretary's Certificate.
38	Closing Deliverables — Miscellaneous	Certified copy of Stonefield bylaws	Stonefield Logistics Group Inc.	Calderwood & Harkness LLP	September 29, 2023	September 29, 2023	Completed	Attached to Secretary's Certificate.
39	Closing Deliverables — Miscellaneous	Board resolutions of Stonefield authorizing mezzanine financing and related transactions	Stonefield Logistics Group Inc. Board of Directors	Calderwood & Harkness LLP (draft); Stonefield (adoption)	September 29, 2023	September 12, 2023	Completed	Adopted September 12, 2023; certified as of closing.
40	Closing Deliverables — Miscellaneous	Net mezzanine proceeds wired to Stonefield Logistics Group Inc. operating account ($120,000,000 less transaction costs of $4,562,500 = $115,437,500)	Ridgeline Mezzanine Capital Fund III, LP (funder); Stonefield Logistics Group Inc. (recipient)	Per Funds Flow Memorandum	September 29, 2023	September 29, 2023	Completed	Wire to Stonefield operating account per wire instructions in Borrowing Request.

[sheet: Party Contact Information]

Party Full Legal Name	Short Name	Role	Entity Type / Jurisdiction	Key Contact(s)	Address	EIN
Stonefield Logistics Group Inc.	SLG	Borrower	Corporation / Delaware	Marcus W. Ellison (CEO); Janet R. Prescott (CFO); Robert D. Nagamine (GC & Secretary)	4800 Commerce Parkway, Suite 1200, Fort Worth, TX 76107	84-3217650
Cascade Ridge Capital Partners, LLC	CRCP	Private Equity Sponsor	LLC / Delaware	Vincent A. Palumbo (Managing Partner)	200 Clarendon Boulevard, 38th Floor, Boston, MA 02116
Cascade Ridge SLG Holdings, LLC	SLG Holdings	Intermediate Holding Company / Guarantor / Parent Equity Pledgor	LLC / Delaware	Vincent A. Palumbo	200 Clarendon Boulevard, 38th Floor, Boston, MA 02116	84-3195472
Ridgeline Mezzanine Capital Fund III, LP	RMCF III	Mezzanine Lender	Limited Partnership / Delaware	Katherine M. Stroud (Managing Director, Deal Lead)	767 Lexington Avenue, 22nd Floor, New York, NY 10065
Ridgeline Capital Management, LLC	Ridgeline GP	General Partner of Mezzanine Lender	LLC / Delaware	Katherine M. Stroud	767 Lexington Avenue, 22nd Floor, New York, NY 10065
Whitmore National Bank, N.A.	WNB	Senior Administrative Agent & Collateral Agent	National Banking Association / OCC	Gregory S. Feinberg (Managing Director)	350 Park Avenue, New York, NY 10022
Greystone Commercial Lending Corp.	Greystone	Senior Syndicate Lender ($75,000,000)	Corporation / Delaware	100 Federal Street, Suite 2400, Boston, MA 02110
Heritage Pacific Bank	Heritage Pacific	Senior Syndicate Lender ($60,000,000)	State-chartered bank / California	555 California Street, 18th Floor, San Francisco, CA 94104
Clearfield Capital Finance, LLC	Clearfield	Senior Syndicate Lender ($50,000,000)	LLC / Delaware	227 West Monroe Street, Suite 3100, Chicago, IL 60606
Stonefield Intermodal Services, Inc.	SIS	Subsidiary Guarantor	Corporation / Texas	4800 Commerce Parkway, Suite 1200, Fort Worth, TX 76107	75-6849321
Stonefield Fleet Management, LLC	SFM	Subsidiary Guarantor	LLC / Texas	4800 Commerce Parkway, Suite 1200, Fort Worth, TX 76107	75-6912488
Stonefield Freight Brokerage, Inc.	SFB	Subsidiary Guarantor	Corporation / Delaware	4800 Commerce Parkway, Suite 1200, Fort Worth, TX 76107	84-3306715
Calderwood & Harkness LLP	C&H	Borrower's Counsel	LLP / New York	Stephanie Okafor (Responsible Partner); Philip Hartmann (Billing Partner); Daniel Obi (Lead Associate); Lisa Morrow (Working Associate); Sylvia Hartwell (Tax Partner)	601 Lexington Avenue, New York, NY 10022
Archer Blackwell & Moss LLP	Vireo Group	Mezzanine Lender's Counsel	LLP / New York	Harrison T. Moss (Lead Partner); Angela N. Whitford (Lead Associate)	1585 Broadway, 34th Floor, New York, NY 10036
Renshaw Pratt LLP	Renshaw Pratt	Senior Agent's Counsel	LLP / New York	David C. Renshaw (Lead Partner)	One Liberty Plaza, 43rd Floor, New York, NY 10006
Caldwell Baines & Associates, PC	Caldwell Baines	Sponsor's Tax Counsel	PC / Massachusetts	Patricia V. Baines (Lead Partner)	200 Clarendon Boulevard, 36th Floor, Boston, MA 02116
Zynvaro Thornton Advisory Group, LLC	Mercer Thornton	Financial Advisor to Borrower	LLC / Texas	Andrew S. Thornton (Lead Managing Director)	2200 Ross Avenue, Suite 3600, Dallas, TX 75201
Braddock & Saylor LLP	Braddock & Saylor	Independent Auditors of Stonefield	LLP / Pennsylvania	William F. Saylor (Engagement Partner)	1700 Market Street, Suite 2800, Philadelphia, PA 19103
Pinnacle Corporate Services, Inc.	Pinnacle	Registered Agent (Delaware) for Stonefield	Corporation / Delaware	1209 Orange Street, Wilmington, DE 19801

[sheet: Key Dates Timeline]

Date	Event / Milestone	Notes
November 15, 2019	Original Senior Credit Agreement dated	Among Stonefield, Whitmore National Bank, N.A. as Admin. Agent, and senior lenders
November 2019	Cascade Ridge acquisition of Stonefield	Total enterprise value ~$520,000,000; Cascade Ridge Capital Fund V, LP; 78.4% ownership through SLG Holdings
April 7, 2022	Senior Credit Agreement amended and restated	A&R Credit Agreement among Stonefield, Whitmore, and senior lenders
June 26, 2023	Engagement opened	Calderwood & Harkness engaged as borrower's counsel; Matter No. 1012-00001
June 28, 2023	Engagement letter executed	Fee cap $675,000 plus disbursements; Billing Code 231892.SLG
July 10, 2023	Ridgeline term sheet received	$120,000,000 mezzanine financing
July 17, 2023	Term sheet executed	Key terms: 1100 bps (850/250), 3.0% warrants, 6-year maturity
August 4, 2023	First draft mezzanine credit agreement circulated	Prepared by Archer Blackwell & Moss LLP
August 11, 2023	First draft intercreditor agreement circulated
August 18, 2023	Senior Agent consent solicitation commenced	Whitmore National Bank, N.A.
September 5, 2023	Senior Agent consent received	Consent from Whitmore
September 11, 2023	Final drafts distributed	All transaction documents in final form
September 14, 2023	Signing	Mezzanine Credit Agreement, Intercreditor Agreement, Amendment No. 3, Guaranty, Pledge and Security Agreement, Parent Equity Pledge executed
September 26, 2023	Borrowing Request delivered	Irrevocable funding request for $120,000,000 on September 29, 2023
September 29, 2023	Closing and Funding	Mezzanine proceeds of $120,000,000 funded; warrants and registration rights agreement delivered; all closing certificates delivered; UCC-1s filed
December 29, 2023	First quarterly interest payment date	Cash interest of 8.50% per annum; PIK of 2.50% compounds quarterly
November 15, 2025	Senior Revolving Credit Facility maturity	$50,000,000 committed; SOFR + 350 bps
November 15, 2026	Senior Term Loan B maturity	$275,000,000; SOFR + 375 bps
September 29, 2029	Mezzanine facility maturity	6-year term from closing
September 29, 2030	Warrant put right 7th anniversary date	Put right exercisable at FMV by independent appraiser

[sheet: Capital Structure Summary]

Tranche	Committed Amount	Funded Amount at Closing	Interest Rate	Maturity Date	Priority / Lien Position	Agent / Lender
Senior Secured Term Loan B	$275,000,000	$275,000,000	SOFR + 375 bps	November 15, 2026	First Lien	Whitmore National Bank, N.A. (Agent); Whitmore ($90M hold), Greystone ($75M), Heritage Pacific ($60M), Clearfield ($50M)
Senior Secured Revolving Credit Facility	$50,000,000	$12,000,000	SOFR + 350 bps	November 15, 2025	First Lien (pari passu with TLB)	Whitmore National Bank, N.A. (Agent)
Mezzanine Term Loan	$120,000,000	$120,000,000	1100 bps (850 cash / 250 PIK)	September 29, 2029	Second Lien / Subordinated	Ridgeline Mezzanine Capital Fund III, LP (sole lender)
Total Funded Debt	$407,000,000
Warrants (Ridgeline)	3.0% fully-diluted equity	$0.01/share exercise	Equity	Ridgeline Mezzanine Capital Fund III, LP

LEVERAGE CALCULATIONS

LTM Adjusted EBITDA (as of June 30, 2023)	$108,600,000
FY2022 Revenue	$687,000,000
FY2022 Adjusted EBITDA	$98,400,000
Total Leverage at Closing ($407,000,000 / $108,600,000)	3.75x	Max Covenant: 4.25x	In Compliance
Senior Leverage at Closing ($287,000,000 / $108,600,000)	2.64x
Mezzanine Leverage — Incremental ($120,000,000 / $108,600,000)	1.10x

TRANSACTION COSTS SUMMARY

Commitment Fee ($120,000,000 × 2.00%)	$2,400,000	Ridgeline Mezzanine Capital Fund III, LP
Financial Advisory Fee ($120,000,000 × 0.75%)	$900,000	Zynvaro Thornton Advisory Group, LLC
Borrower's Counsel Fees (fee cap)	$675,000	Calderwood & Harkness LLP
Lender's Counsel Expense Reimbursement (cap)	$450,000	Archer Blackwell & Moss LLP
Senior Agent Consent/Amendment Fee ($275,000,000 × 0.05%)	$137,500	Whitmore National Bank, N.A.
Total Transaction Costs	$4,562,500
Net Proceeds to Stonefield ($120,000,000 - $4,562,500)	$115,437,500

[sheet: Closing Checklist]
Item No. | Category | Document / Deliverable Description | Parties / Signatories | Responsible Party | Target Date | Actual Date Completed | Status | Notes / Comments
1 | Core Transaction Agreements | Mezzanine Credit Agreement — Execution version, dated September 14, 2023, among Stonefield Logistics Group Inc. as Borrower, Ridgeline Mezzanine Capital Fund III, LP as Mezzanine Lender, and the Guarantors party thereto. $120,000,000 mezzanine term loan; 1100 bps (850 cash / 250 PIK); maturity September 29, 2029; New York law. | Stonefield Logistics Group Inc.; Ridgeline Mezzanine Capital Fund III, LP; Cascade Ridge SLG Holdings, LLC; Stonefield Intermodal Services, Inc.; Stonefield Fleet Management, LLC; Stonefield Freight Brokerage, Inc. | Calderwood & Harkness LLP / Archer Blackwell & Moss LLP | September 14, 2023 | September 14, 2023 | Completed | Signed at signing; effective upon closing and funding.
2 | Core Transaction Agreements | Intercreditor Agreement — Execution version, dated September 14, 2023, among Whitmore National Bank, N.A. as Senior Agent, Ridgeline Mezzanine Capital Fund III, LP as Mezzanine Lender, and acknowledged by Stonefield Logistics Group Inc. Lien subordination, 180-day standstill, payment blockage, purchase option. | Whitmore National Bank, N.A.; Ridgeline Mezzanine Capital Fund III, LP; Stonefield Logistics Group Inc. (acknowledgment) | Calderwood & Harkness LLP / Renshaw Pratt LLP / Archer Blackwell & Moss LLP | September 14, 2023 | September 14, 2023 | Completed | Governs senior/mezzanine intercreditor rights. New York law.
3 | Core Transaction Agreements | Mezzanine Guaranty Agreement — Execution version, dated September 14, 2023, by Cascade Ridge SLG Holdings, LLC, Stonefield Intermodal Services, Inc., Stonefield Fleet Management, LLC, and Stonefield Freight Brokerage, Inc. in favor of Ridgeline Mezzanine Capital Fund III, LP. | Cascade Ridge SLG Holdings, LLC; Stonefield Intermodal Services, Inc.; Stonefield Fleet Management, LLC; Stonefield Freight Brokerage, Inc.; Ridgeline Mezzanine Capital Fund III, LP | Calderwood & Harkness LLP / Archer Blackwell & Moss LLP | September 14, 2023 | September 14, 2023 | Completed | New York law.
4 | Core Transaction Agreements | Mezzanine Pledge and Security Agreement — Execution version, dated September 14, 2023, granting Ridgeline Mezzanine Capital Fund III, LP a second-priority perfected security interest in substantially all assets of Stonefield and subsidiary guarantors (equipment, vehicles, rolling stock, accounts receivable, inventory, IP, subsidiary equity interests). | Stonefield Logistics Group Inc.; Stonefield Intermodal Services, Inc.; Stonefield Fleet Management, LLC; Stonefield Freight Brokerage, Inc.; Ridgeline Mezzanine Capital Fund III, LP | Calderwood & Harkness LLP / Archer Blackwell & Moss LLP | September 14, 2023 | September 14, 2023 | Completed | Second-priority lien on shared collateral. New York law.
5 | Core Transaction Agreements | Parent Equity Pledge Agreement — Execution version, dated September 14, 2023, by Cascade Ridge SLG Holdings, LLC pledging 100% of equity interests in Stonefield Logistics Group Inc. to Ridgeline Mezzanine Capital Fund III, LP on a first-priority basis (not shared with senior facility). | Cascade Ridge SLG Holdings, LLC; Ridgeline Mezzanine Capital Fund III, LP | Calderwood & Harkness LLP / Archer Blackwell & Moss LLP | September 14, 2023 | September 14, 2023 | Completed | First-priority pledge; exclusive to mezzanine. New York law.
6 | Core Transaction Agreements | Warrant Agreement — Execution version, dated September 29, 2023, between Stonefield Logistics Group Inc. and Ridgeline Mezzanine Capital Fund III, LP. 3.0% warrant coverage of fully-diluted equity (post-exercise basis); $0.01/share exercise price; detachable; immediately exercisable; weighted-average broad-based anti-dilution; put right on change of control, IPO, or 7th anniversary (September 29, 2030) at FMV. | Stonefield Logistics Group Inc.; Ridgeline Mezzanine Capital Fund III, LP | Calderwood & Harkness LLP / Archer Blackwell & Moss LLP | September 29, 2023 | September 29, 2023 | Completed | Delivered at closing.
7 | Core Transaction Agreements | Registration Rights Agreement — Execution version, dated September 29, 2023, between Stonefield Logistics Group Inc. and Ridgeline Mezzanine Capital Fund III, LP. Demand and piggyback registration rights for shares issuable upon warrant exercise. | Stonefield Logistics Group Inc.; Ridgeline Mezzanine Capital Fund III, LP | Calderwood & Harkness LLP / Archer Blackwell & Moss LLP | September 29, 2023 | September 29, 2023 | Completed | Delivered at closing.
8 | Senior Facility Amendment / Consent | Amendment No. 3 to Amended and Restated Senior Credit Agreement (originally dated November 15, 2019, as amended and restated April 7, 2022) — Execution version, dated September 14, 2023. Permits incurrence of $120,000,000 mezzanine indebtedness, grants second-lien on shared collateral, authorizes Intercreditor Agreement. | Stonefield Logistics Group Inc.; Whitmore National Bank, N.A. (Admin. Agent & Collateral Agent); Greystone Commercial Lending Corp.; Heritage Pacific Bank; Clearfield Capital Finance, LLC | Calderwood & Harkness LLP / Renshaw Pratt LLP | September 14, 2023 | September 14, 2023 | Completed | Senior Agent amendment fee of $137,500 ($275M × 0.05%) payable at mezzanine closing.
9 | Senior Facility Amendment / Consent | Senior Agent Consent Letter — Dated September 5, 2023, from Whitmore National Bank, N.A. consenting to mezzanine incurrence, Intercreditor Agreement, and second-priority liens, subject to Amendment No. 3 and Intercreditor Agreement execution. | Whitmore National Bank, N.A. | Calderwood & Harkness LLP (prepared for Whitmore execution) | September 5, 2023 | September 5, 2023 | Completed | Consent received as anticipated.
10 | Closing Certificates — Borrower | Officer's Certificate of Stonefield Logistics Group Inc. (Closing Conditions) — Dated September 29, 2023. Certifies satisfaction of conditions precedent to funding: accuracy of representations and warranties, no default or event of default, no material adverse change. | Marcus W. Ellison (CEO); Janet R. Prescott (CFO) | Calderwood & Harkness LLP (draft); Stonefield (execution) | September 29, 2023 | September 29, 2023 | Completed
11 | Closing Certificates — Borrower | Secretary's Certificate of Stonefield Logistics Group Inc. — Dated September 29, 2023. Attaches certified copies of certificate of incorporation, bylaws, board resolutions authorizing mezzanine financing, and incumbency certificate of authorized officers. | Robert D. Nagamine (General Counsel & Secretary) | Calderwood & Harkness LLP (draft); Stonefield (execution) | September 29, 2023 | September 29, 2023 | Completed | Delaware corporation; EIN: 84-3217650.
12 | Closing Certificates — Subsidiary Guarantors | Secretary's Certificate of Subsidiary Guarantors (Combined) — Dated September 29, 2023. Covers Stonefield Intermodal Services, Inc. (TX corp., EIN: 75-6849321), Stonefield Fleet Management, LLC (TX LLC, EIN: 75-6912488), and Stonefield Freight Brokerage, Inc. (DE corp., EIN: 84-3306715). Attaches organizational documents, authorizing resolutions, and incumbency. | Authorized officer/manager of each subsidiary guarantor | Calderwood & Harkness LLP (draft); Stonefield (execution) | September 29, 2023 | September 29, 2023 | Completed
13 | Closing Certificates — Financial | Solvency Certificate — Dated September 29, 2023. Executed by Janet R. Prescott (CFO). Certifies solvency of Stonefield and subsidiaries on a consolidated basis after giving effect to $120,000,000 mezzanine financing. Total funded debt at closing: $407,000,000; LTM Adjusted EBITDA: $108,600,000. | Janet R. Prescott (CFO) | Calderwood & Harkness LLP (draft); Stonefield (execution) | September 29, 2023 | September 29, 2023 | Completed
14 | Closing Certificates — Financial | Initial Compliance Certificate — Dated September 29, 2023. Calculates LTM financial covenant levels: Total Leverage 3.75x (max 4.25x); Fixed Charge Coverage Ratio (min 1.10x); Liquidity (min $15,000,000); CapEx (max $85,000,000/year). Based on LTM Adjusted EBITDA of $108,600,000. | Janet R. Prescott (CFO) | Calderwood & Harkness LLP (draft); Stonefield (execution) | September 29, 2023 | September 29, 2023 | Completed | All covenants in compliance at closing.
15 | Funding / Borrowing | Borrowing Request / Funding Notice — Dated September 26, 2023. Irrevocable request from Stonefield to Ridgeline requesting funding of $120,000,000 on September 29, 2023. Specifies wire instructions; certifies satisfaction of conditions precedent. | Stonefield Logistics Group Inc. | Calderwood & Harkness LLP (draft); Stonefield (execution) | September 26, 2023 | September 26, 2023 | Completed | Delivered three business days prior to closing.
16 | Funding / Funds Flow | Closing Funds Flow Memorandum — Dated September 29, 2023. Details disbursement of $120,000,000: Commitment fee $2,400,000 to Ridgeline; Financial advisory fee $900,000 to Zynvaro Thornton Advisory Group, LLC; C&H fees $675,000; Vireo Group fees $450,000; Senior Agent amendment fee $137,500 to Whitmore National Bank, N.A.; Net proceeds to Stonefield. Wire instructions for each recipient. Total transaction costs: $4,562,500. | All parties | Calderwood & Harkness LLP | September 29, 2023 | September 29, 2023 | Completed | Approved by all parties prior to closing.
17 | Legal Opinions | Calderwood & Harkness Borrower's Counsel Opinion Letter — Dated September 29, 2023. Addressed to Ridgeline Mezzanine Capital Fund III, LP. Covers: due organization and good standing (Stonefield and each guarantor); corporate authority; due authorization and execution; enforceability (subject to customary qualifications); no conflicts with organizational documents or applicable law; no required governmental consents. New York and Delaware law opinion. | Calderwood & Harkness LLP | Calderwood & Harkness LLP (Stephanie Okafor) | September 29, 2023 | September 29, 2023 | Completed
18 | Legal Opinions | Calderwood & Harkness UCC/Lien Perfection Opinion — Dated September 29, 2023. Addressed to Ridgeline Mezzanine Capital Fund III, LP. Covers creation, attachment, and perfection of second-priority security interests under Mezzanine Pledge and Security Agreement and first-priority security interests under Parent Equity Pledge Agreement, upon filing of UCC-1 financing statements in Delaware and Texas. | Calderwood & Harkness LLP | Calderwood & Harkness LLP (Stephanie Okafor) | September 29, 2023 | September 29, 2023 | Completed
19 | UCC Filings / Perfection | UCC-1 Financing Statement (Delaware — Mezzanine) — Filed September 29, 2023 with Delaware Secretary of State. Secured Party: Ridgeline Mezzanine Capital Fund III, LP. Debtor: Stonefield Logistics Group Inc. Second-priority security interest in substantially all assets. | Ridgeline Mezzanine Capital Fund III, LP (Secured Party); Stonefield Logistics Group Inc. (Debtor) | Calderwood & Harkness LLP (preparation and filing) | September 29, 2023 | September 29, 2023 | Completed | Filing confirmation received.
20 | UCC Filings / Perfection | UCC-1 Financing Statement (Texas — Mezzanine) — Filed September 29, 2023 with Texas Secretary of State. Secured Party: Ridgeline Mezzanine Capital Fund III, LP. Debtors: Stonefield Intermodal Services, Inc.; Stonefield Fleet Management, LLC. Second-priority security interest in substantially all assets of Texas subsidiary guarantors. | Ridgeline Mezzanine Capital Fund III, LP (Secured Party); Stonefield Intermodal Services, Inc. and Stonefield Fleet Management, LLC (Debtors) | Calderwood & Harkness LLP (preparation and filing) | September 29, 2023 | September 29, 2023 | Completed | Filing confirmation received.
21 | UCC Filings / Perfection | UCC Lien Search Summary Memorandum — Dated September 12, 2023. Pre-closing lien searches in Delaware and Texas for Stonefield and each subsidiary guarantor. Confirms existing senior UCC-1 filings by Whitmore National Bank, N.A. as Collateral Agent. No competing or unexpected liens identified. | N/A (internal memorandum) | Lisa Morrow / Daniel Obi — Calderwood & Harkness LLP | September 12, 2023 | September 12, 2023 | Completed | Recommended proceeding with mezzanine UCC-1 filings.
22 | UCC Filings / Perfection | UCC-1 Financing Statement (Delaware — Stonefield Freight Brokerage, Inc.) — Filed September 29, 2023 with Delaware Secretary of State. Secured Party: Ridgeline Mezzanine Capital Fund III, LP. Debtor: Stonefield Freight Brokerage, Inc. Second-priority security interest. | Ridgeline Mezzanine Capital Fund III, LP (Secured Party); Stonefield Freight Brokerage, Inc. (Debtor) | Calderwood & Harkness LLP (preparation and filing) | September 29, 2023 | September 29, 2023 | Completed | SFB organized in Delaware; filing in DE Secretary of State.
23 | Good Standing Certificates | Certificate of Good Standing — Stonefield Logistics Group Inc. — Delaware Secretary of State | Stonefield Logistics Group Inc. | Calderwood & Harkness LLP (order) | September 29, 2023 | September 27, 2023 | Completed | Dated within 10 days of closing.
24 | Good Standing Certificates | Certificate of Good Standing — Stonefield Logistics Group Inc. — Texas Secretary of State (foreign qualification) | Stonefield Logistics Group Inc. | Calderwood & Harkness LLP (order) | September 29, 2023 | September 27, 2023 | Completed
25 | Good Standing Certificates | Certificate of Good Standing — Cascade Ridge SLG Holdings, LLC — Delaware Secretary of State | Cascade Ridge SLG Holdings, LLC | Calderwood & Harkness LLP (order) | September 29, 2023 | September 27, 2023 | Completed | EIN: 84-3195472.
26 | Good Standing Certificates | Certificate of Good Standing — Stonefield Intermodal Services, Inc. — Texas Secretary of State | Stonefield Intermodal Services, Inc. | Calderwood & Harkness LLP (order) | September 29, 2023 | September 27, 2023 | Completed
27 | Good Standing Certificates | Certificate of Good Standing — Stonefield Fleet Management, LLC — Texas Secretary of State | Stonefield Fleet Management, LLC | Calderwood & Harkness LLP (order) | September 29, 2023 | September 27, 2023 | Completed
28 | Good Standing Certificates | Certificate of Good Standing — Stonefield Freight Brokerage, Inc. — Delaware Secretary of State | Stonefield Freight Brokerage, Inc. | Calderwood & Harkness LLP (order) | September 29, 2023 | September 27, 2023 | Completed
29 | Insurance / Miscellaneous | Evidence of Insurance — Certificates of insurance for Stonefield and subsidiaries naming Ridgeline Mezzanine Capital Fund III, LP as additional insured / loss payee as applicable | Stonefield Logistics Group Inc. | Stonefield (procurement); Calderwood & Harkness LLP (review) | September 29, 2023 | September 28, 2023 | Completed
30 | Insurance / Miscellaneous | Registered Agent Confirmation — Pinnacle Corporate Services, Inc., 1209 Orange Street, Wilmington, Delaware 19801 (registered agent for Stonefield in Delaware) | Pinnacle Corporate Services, Inc. | Calderwood & Harkness LLP | September 29, 2023 | September 25, 2023 | Completed
31 | Fees and Expenses | Payment of Commitment Fee — $2,400,000 ($120,000,000 × 2.00%) to Ridgeline Mezzanine Capital Fund III, LP | Stonefield Logistics Group Inc. (payor); Ridgeline Mezzanine Capital Fund III, LP (payee) | Per Funds Flow Memorandum | September 29, 2023 | September 29, 2023 | Completed | Netted from funding proceeds per funds flow.
32 | Fees and Expenses | Payment of Financial Advisory Fee — $900,000 ($120,000,000 × 0.75%) to Zynvaro Thornton Advisory Group, LLC | Stonefield Logistics Group Inc. (payor); Zynvaro Thornton Advisory Group, LLC (payee) | Per Funds Flow Memorandum | September 29, 2023 | September 29, 2023 | Completed | Wire to 2200 Ross Avenue, Suite 3600, Dallas, TX 75201.
33 | Fees and Expenses | Payment of Borrower's Counsel Fees — $675,000 (fee cap) plus disbursements to Calderwood & Harkness LLP | Stonefield Logistics Group Inc. (payor); Calderwood & Harkness LLP (payee) | Per Funds Flow Memorandum | September 29, 2023 | September 29, 2023 | Completed | Wire to 601 Lexington Avenue, New York, NY 10022.
34 | Fees and Expenses | Payment of Lender's Counsel Expense Reimbursement — $450,000 (cap) plus disbursements to Archer Blackwell & Moss LLP | Stonefield Logistics Group Inc. (payor); Archer Blackwell & Moss LLP (payee) | Per Funds Flow Memorandum | September 29, 2023 | September 29, 2023 | Completed | Wire to 1585 Broadway, 34th Floor, New York, NY 10036.
35 | Fees and Expenses | Payment of Senior Agent Consent/Amendment Fee — $137,500 ($275,000,000 × 0.05%) to Whitmore National Bank, N.A. | Stonefield Logistics Group Inc. (payor); Whitmore National Bank, N.A. (payee) | Per Funds Flow Memorandum | September 29, 2023 | September 29, 2023 | Completed | Wire to 350 Park Avenue, New York, NY 10022.
36 | Closing Deliverables — Miscellaneous | Closing Checklist — Final version, dated September 29, 2023 | N/A | Daniel Obi / Lisa Morrow — Calderwood & Harkness LLP | September 29, 2023 | September 29, 2023 | Completed | This document. Matter No. 1012-00001.
37 | Closing Deliverables — Miscellaneous | Certified copy of Stonefield certificate of incorporation (Delaware) | Stonefield Logistics Group Inc. | Calderwood & Harkness LLP | September 29, 2023 | September 29, 2023 | Completed | Attached to Secretary's Certificate.
38 | Closing Deliverables — Miscellaneous | Certified copy of Stonefield bylaws | Stonefield Logistics Group Inc. | Calderwood & Harkness LLP | September 29, 2023 | September 29, 2023 | Completed | Attached to Secretary's Certificate.
39 | Closing Deliverables — Miscellaneous | Board resolutions of Stonefield authorizing mezzanine financing and related transactions | Stonefield Logistics Group Inc. Board of Directors | Calderwood & Harkness LLP (draft); Stonefield (adoption) | September 29, 2023 | September 12, 2023 | Completed | Adopted September 12, 2023; certified as of closing.
40 | Closing Deliverables — Miscellaneous | Net mezzanine proceeds wired to Stonefield Logistics Group Inc. operating account ($120,000,000 less transaction costs of $4,562,500 = $115,437,500) | Ridgeline Mezzanine Capital Fund III, LP (funder); Stonefield Logistics Group Inc. (recipient) | Per Funds Flow Memorandum | September 29, 2023 | September 29, 2023 | Completed | Wire to Stonefield operating account per wire instructions in Borrowing Request.
[sheet: Party Contact Information]
Party Full Legal Name | Short Name | Role | Entity Type / Jurisdiction | Key Contact(s) | Address | EIN
Stonefield Logistics Group Inc. | SLG | Borrower | Corporation / Delaware | Marcus W. Ellison (CEO); Janet R. Prescott (CFO); Robert D. Nagamine (GC & Secretary) | 4800 Commerce Parkway, Suite 1200, Fort Worth, TX 76107 | 84-3217650
Cascade Ridge Capital Partners, LLC | CRCP | Private Equity Sponsor | LLC / Delaware | Vincent A. Palumbo (Managing Partner) | 200 Clarendon Boulevard, 38th Floor, Boston, MA 02116
Cascade Ridge SLG Holdings, LLC | SLG Holdings | Intermediate Holding Company / Guarantor / Parent Equity Pledgor | LLC / Delaware | Vincent A. Palumbo | 200 Clarendon Boulevard, 38th Floor, Boston, MA 02116 | 84-3195472
Ridgeline Mezzanine Capital Fund III, LP | RMCF III | Mezzanine Lender | Limited Partnership / Delaware | Katherine M. Stroud (Managing Director, Deal Lead) | 767 Lexington Avenue, 22nd Floor, New York, NY 10065
Ridgeline Capital Management, LLC | Ridgeline GP | General Partner of Mezzanine Lender | LLC / Delaware | Katherine M. Stroud | 767 Lexington Avenue, 22nd Floor, New York, NY 10065
Whitmore National Bank, N.A. | WNB | Senior Administrative Agent & Collateral Agent | National Banking Association / OCC | Gregory S. Feinberg (Managing Director) | 350 Park Avenue, New York, NY 10022
Greystone Commercial Lending Corp. | Greystone | Senior Syndicate Lender ($75,000,000) | Corporation / Delaware | 100 Federal Street, Suite 2400, Boston, MA 02110
Heritage Pacific Bank | Heritage Pacific | Senior Syndicate Lender ($60,000,000) | State-chartered bank / California | 555 California Street, 18th Floor, San Francisco, CA 94104
Clearfield Capital Finance, LLC | Clearfield | Senior Syndicate Lender ($50,000,000) | LLC / Delaware | 227 West Monroe Street, Suite 3100, Chicago, IL 60606
Stonefield Intermodal Services, Inc. | SIS | Subsidiary Guarantor | Corporation / Texas | 4800 Commerce Parkway, Suite 1200, Fort Worth, TX 76107 | 75-6849321
Stonefield Fleet Management, LLC | SFM | Subsidiary Guarantor | LLC / Texas | 4800 Commerce Parkway, Suite 1200, Fort Worth, TX 76107 | 75-6912488
Stonefield Freight Brokerage, Inc. | SFB | Subsidiary Guarantor | Corporation / Delaware | 4800 Commerce Parkway, Suite 1200, Fort Worth, TX 76107 | 84-3306715
Calderwood & Harkness LLP | C&H | Borrower's Counsel | LLP / New York | Stephanie Okafor (Responsible Partner); Philip Hartmann (Billing Partner); Daniel Obi (Lead Associate); Lisa Morrow (Working Associate); Sylvia Hartwell (Tax Partner) | 601 Lexington Avenue, New York, NY 10022
Archer Blackwell & Moss LLP | Vireo Group | Mezzanine Lender's Counsel | LLP / New York | Harrison T. Moss (Lead Partner); Angela N. Whitford (Lead Associate) | 1585 Broadway, 34th Floor, New York, NY 10036
Renshaw Pratt LLP | Renshaw Pratt | Senior Agent's Counsel | LLP / New York | David C. Renshaw (Lead Partner) | One Liberty Plaza, 43rd Floor, New York, NY 10006
Caldwell Baines & Associates, PC | Caldwell Baines | Sponsor's Tax Counsel | PC / Massachusetts | Patricia V. Baines (Lead Partner) | 200 Clarendon Boulevard, 36th Floor, Boston, MA 02116
Zynvaro Thornton Advisory Group, LLC | Mercer Thornton | Financial Advisor to Borrower | LLC / Texas | Andrew S. Thornton (Lead Managing Director) | 2200 Ross Avenue, Suite 3600, Dallas, TX 75201
Braddock & Saylor LLP | Braddock & Saylor | Independent Auditors of Stonefield | LLP / Pennsylvania | William F. Saylor (Engagement Partner) | 1700 Market Street, Suite 2800, Philadelphia, PA 19103
Pinnacle Corporate Services, Inc. | Pinnacle | Registered Agent (Delaware) for Stonefield | Corporation / Delaware | 1209 Orange Street, Wilmington, DE 19801
[sheet: Key Dates Timeline]
Date | Event / Milestone | Notes
November 15, 2019 | Original Senior Credit Agreement dated | Among Stonefield, Whitmore National Bank, N.A. as Admin. Agent, and senior lenders
November 2019 | Cascade Ridge acquisition of Stonefield | Total enterprise value ~$520,000,000; Cascade Ridge Capital Fund V, LP; 78.4% ownership through SLG Holdings
April 7, 2022 | Senior Credit Agreement amended and restated | A&R Credit Agreement among Stonefield, Whitmore, and senior lenders
June 26, 2023 | Engagement opened | Calderwood & Harkness engaged as borrower's counsel; Matter No. 1012-00001
June 28, 2023 | Engagement letter executed | Fee cap $675,000 plus disbursements; Billing Code 231892.SLG
July 10, 2023 | Ridgeline term sheet received | $120,000,000 mezzanine financing
July 17, 2023 | Term sheet executed | Key terms: 1100 bps (850/250), 3.0% warrants, 6-year maturity
August 4, 2023 | First draft mezzanine credit agreement circulated | Prepared by Archer Blackwell & Moss LLP
August 11, 2023 | First draft intercreditor agreement circulated
August 18, 2023 | Senior Agent consent solicitation commenced | Whitmore National Bank, N.A.
September 5, 2023 | Senior Agent consent received | Consent from Whitmore
September 11, 2023 | Final drafts distributed | All transaction documents in final form
September 14, 2023 | Signing | Mezzanine Credit Agreement, Intercreditor Agreement, Amendment No. 3, Guaranty, Pledge and Security Agreement, Parent Equity Pledge executed
September 26, 2023 | Borrowing Request delivered | Irrevocable funding request for $120,000,000 on September 29, 2023
September 29, 2023 | Closing and Funding | Mezzanine proceeds of $120,000,000 funded; warrants and registration rights agreement delivered; all closing certificates delivered; UCC-1s filed
December 29, 2023 | First quarterly interest payment date | Cash interest of 8.50% per annum; PIK of 2.50% compounds quarterly
November 15, 2025 | Senior Revolving Credit Facility maturity | $50,000,000 committed; SOFR + 350 bps
November 15, 2026 | Senior Term Loan B maturity | $275,000,000; SOFR + 375 bps
September 29, 2029 | Mezzanine facility maturity | 6-year term from closing
September 29, 2030 | Warrant put right 7th anniversary date | Put right exercisable at FMV by independent appraiser
[sheet: Capital Structure Summary]
Tranche | Committed Amount | Funded Amount at Closing | Interest Rate | Maturity Date | Priority / Lien Position | Agent / Lender
Senior Secured Term Loan B | $275,000,000 | $275,000,000 | SOFR + 375 bps | November 15, 2026 | First Lien | Whitmore National Bank, N.A. (Agent); Whitmore ($90M hold), Greystone ($75M), Heritage Pacific ($60M), Clearfield ($50M)
Senior Secured Revolving Credit Facility | $50,000,000 | $12,000,000 | SOFR + 350 bps | November 15, 2025 | First Lien (pari passu with TLB) | Whitmore National Bank, N.A. (Agent)
Mezzanine Term Loan | $120,000,000 | $120,000,000 | 1100 bps (850 cash / 250 PIK) | September 29, 2029 | Second Lien / Subordinated | Ridgeline Mezzanine Capital Fund III, LP (sole lender)
Total Funded Debt | $407,000,000
Warrants (Ridgeline) | 3.0% fully-diluted equity | $0.01/share exercise | Equity | Ridgeline Mezzanine Capital Fund III, LP
LEVERAGE CALCULATIONS
LTM Adjusted EBITDA (as of June 30, 2023) | $108,600,000
FY2022 Revenue | $687,000,000
FY2022 Adjusted EBITDA | $98,400,000
Total Leverage at Closing ($407,000,000 / $108,600,000) | 3.75x | Max Covenant: 4.25x | In Compliance
Senior Leverage at Closing ($287,000,000 / $108,600,000) | 2.64x
Mezzanine Leverage — Incremental ($120,000,000 / $108,600,000) | 1.10x
TRANSACTION COSTS SUMMARY
Commitment Fee ($120,000,000 × 2.00%) | $2,400,000 | Ridgeline Mezzanine Capital Fund III, LP
Financial Advisory Fee ($120,000,000 × 0.75%) | $900,000 | Zynvaro Thornton Advisory Group, LLC
Borrower's Counsel Fees (fee cap) | $675,000 | Calderwood & Harkness LLP
Lender's Counsel Expense Reimbursement (cap) | $450,000 | Archer Blackwell & Moss LLP
Senior Agent Consent/Amendment Fee ($275,000,000 × 0.05%) | $137,500 | Whitmore National Bank, N.A.
Total Transaction Costs | $4,562,500
Net Proceeds to Stonefield ($120,000,000 - $4,562,500) | $115,437,500

[sheet: Closing Checklist]

LEVERAGE CALCULATIONS

TRANSACTION COSTS SUMMARY

Record

Parties

Dates

Amounts