[sheet: Cover]

Field	Value
Document Title	Funds Flow Memorandum
Transaction	Consensual Out-of-Court Restructuring of Stonefield Logistics Group Inc.
Date of Memorandum	December 18, 2023
Closing Date	December 19, 2023
Matter Number	1012-00002
Prepared By	Gabrielle Moss, Working Associate, Calderwood & Harkness LLP
Reviewed By	Nathan Ikeda, Lead Associate, Calderwood & Harkness LLP
Approved By	Priya Sundaram, Chief Financial Officer, Stonefield Logistics Group Inc.
Governing Law	State of New York
Borrower	Stonefield Logistics Group Inc.
Borrower Address	4200 Commerce Street, Suite 1500, Dallas, TX 75201
Borrower EIN	83-2457109
CONFIDENTIAL — PRIVILEGED	This memorandum is prepared for the exclusive use of the parties to the restructuring transactions and their advisors.

[sheet: Sources]

Line Item No.	Source Description	Provider Entity	Wire From Account	Gross Amount ($)	OID / Deductions ($)	Net Amount ($)	Notes
1	Super-Priority Term Loan — Initial Funding	Belvedere Credit Opportunities Fund LP	Belvedere — account at 450 Lexington Avenue, 30th Floor, New York, NY 10017	45000000	1100000	43900000	$55.0M total facility ($45.0M funded at close, $10.0M delayed-draw term loan); OID of 2.00% on $55.0M commitment = $1,100,000 deducted from initial funding; SOFR + 700 bps (100 bps floor); maturity 12/19/2027
2	Ridgeline Capital Partners Fund III, L.P. — New Cash Equity Contribution	Ridgeline Capital Partners Fund III, L.P.	Ridgeline — account at 300 Park Avenue, 28th Floor, New York, NY 10022	12500000	0	12500000	Sponsor equity contribution to fund transaction costs and liquidity cushion; funded 12/15/2023 into escrow, released at closing 12/19/2023
TOTAL SOURCES	57500000	1100000	56400000

[sheet: Uses]

Line Item No.	Category	Use Description	Payee Entity	Wire To Account / Instructions	Amount ($)	Notes
1	Consent Fees	First Lien Term Loan B Consent Fee — 50 bps	Consenting TLB Lenders (via Pinnacle National Bank, N.A. as Administrative Agent)	Pinnacle National Bank, N.A. — 200 Liberty Street, New York, NY 10281; for distribution to consenting TLB lenders pro rata	1425000	$285.0M outstanding TLB × 0.50% = $1,425,000; payable to lenders holding $228.5M (80.2%) who consented, distributed pro rata by Pinnacle as agent
2	Consent Fees	Revolving Credit Facility Consent Fee — 25 bps	Consenting Revolver Lenders (via Pinnacle National Bank, N.A. as Administrative Agent)	Pinnacle National Bank, N.A. — 200 Liberty Street, New York, NY 10281; for distribution to Pinnacle ($20.0M commitment), Great Basin Commercial Bank ($15.0M commitment reduced pro rata), Tidewater Lending Corporation ($15.0M commitment reduced pro rata)	87500	$35.0M reduced commitment × 0.25% = $87,500; all 3 revolver lenders consented unanimously
Subtotal — Consent Fees	1512500
3	Legal Fees — Debtor's Counsel	Calderwood & Harkness LLP — Legal Fees (estimated)	Calderwood & Harkness LLP	C&H — 599 Lexington Avenue, New York, NY 10022	2850000	Includes standard hourly fees plus $750,000 success fee upon closing; $100,000 retainer previously paid credited; Matter No. 1012-00002; Billing Partner: Colette Whitman
4	Financial Advisory Fees — Debtor's Advisor	Hargrove Advisory Group LLC — Financial Advisory Fees	Hargrove Advisory Group LLC	Hargrove — 1345 Avenue of the Americas, 38th Floor, New York, NY 10105	3200000	Monthly retainer fees plus completion fee; retained by Stonefield Board effective March 15, 2023; Managing Director: Elena Voss
5	Legal Fees — First Lien Lenders' Counsel	Westlake Harden & Cole LLP — Legal Fees (estimated; reimbursed by Company)	Westlake Harden & Cole LLP	WHC — 787 Seventh Avenue, 34th Floor, New York, NY 10019	1400000	Counsel to first lien lender group; Lead Partner: Ramona Quelibo; Associate: Gregory Noll; fees reimbursed by Stonefield per Credit Agreement
6	Legal Fees — Mezzanine Ad Hoc Group Counsel	Thornbury McCaffrey LLP — Legal Fees (estimated; reimbursed by Company)	Thornbury McCaffrey LLP	TM — 375 Park Avenue, 25th Floor, New York, NY 10152	1100000	Counsel to ad hoc group of mezzanine holders (Graystone, Ashland, Dunmore); Lead Partner: Alan Driscoll; Associate: Monica Firth; fees reimbursed by Stonefield per RSA
Subtotal — Legal Fees (all counsel)	5350000
7	Financial Advisory Fees — Mezzanine Ad Hoc Group Advisor	Meridian Veltrian Partners LLC — Financial Advisory Fees (reimbursed by Company)	Meridian Veltrian Partners LLC	Meridian — 660 Fifth Avenue, 18th Floor, New York, NY 10103	900000	Financial advisor to ad hoc mezzanine group; fees reimbursed by Stonefield per RSA
Subtotal — Financial Advisory Fees	4100000
8	Insurance	D&O Tail Insurance Premium	Northgate Specialty Insurance Company	Northgate Specialty — per carrier wire instructions	475000	Policy No. NSI-DOL-2023-07721; $15.0M D&O coverage; Side A DIC and ABC structure; 6-year tail period from closing
Subtotal — Insurance	475000
9	Filing / Administrative / Trustee Fees	Filing, administrative, and trustee fees	Various (Continental Fiduciary Trust Company, DE Secretary of State, and others)	Continental Fiduciary Trust Company — 100 Wall Street, 15th Floor, New York, NY 10005; plus DE SOS filing fees and other administrative	225000	Includes trustee fees to Continental Fiduciary for Supplemental Indenture / note cancellation; DE Secretary of State filing fees for Amended Certificate of Incorporation and Certificate of Designations (DE File No. 6341872); UCC filing fees
Subtotal — Filing / Admin / Trustee	225000
10	OID (Deducted at Source)	Super-Priority OID — 2.00%	Retained by Belvedere Credit Opportunities Fund LP (netted from funding)	N/A — netted from super-priority funding wire	1100000	$55.0M × 2.00% = $1,100,000; deducted from initial $45.0M funding, resulting in net wire of $43,900,000
Subtotal — OID (Deducted at Source)	1100000
TOTAL USES BEFORE RESIDUAL	12762500
11	Residual Cash to Company	Residual cash — deposited to Stonefield operating account	Stonefield Logistics Group Inc.	Stonefield operating account at Pinnacle National Bank, N.A. — 200 Liberty Street, New York, NY 10281	43637500	Calculated as Total Net Sources minus all other Uses; residual to bolster liquidity
GRAND TOTAL USES	56400000

[sheet: Sources & Uses Summary]

Line

SOURCES

S-1	Super-Priority Term Loan — Gross Funding (Belvedere Credit Opportunities Fund LP)	45000000
S-2	Less: OID (2.00% on $55.0M commitment)	-1100000
S-3	Super-Priority Term Loan — Net Proceeds	43900000
S-4	Ridgeline Capital Partners Fund III, L.P. — New Cash Equity Contribution	12500000
TOTAL NET SOURCES	56400000

USES

U-1	TLB Consent Fee (50 bps on $285.0M)	1425000
U-2	Revolver Consent Fee (25 bps on $35.0M)	87500
U-3	Calderwood & Harkness LLP — Legal Fees (debtor's counsel)	2850000
U-4	Hargrove Advisory Group LLC — Financial Advisory Fees (debtor's advisor)	3200000
U-5	Westlake Harden & Cole LLP — Legal Fees (first lien counsel; Company-reimbursed)	1400000
U-6	Thornbury McCaffrey LLP — Legal Fees (mezz ad hoc group counsel; Company-reimbursed)	1100000
U-7	Meridian Veltrian Partners LLC — Financial Advisory Fees (mezz advisor; Company-reimbursed)	900000
U-8	D&O Tail Insurance Premium (Northgate Specialty Insurance Company)	475000
U-9	Filing / Administrative / Trustee Fees	225000
U-10	OID (netted from super-priority funding at source)	1100000
U-11	Residual Cash to Stonefield Operating Account (Pinnacle National Bank, N.A.)	43637500
TOTAL USES	56400000
BALANCE CHECK (Sources minus Uses)	0

[sheet: Wire Instructions]

Payee No.	Payee Entity	Payee Contact	Bank Name	ABA / Routing No.	Account No.	Account Name	Reference	Amount ($)
1	Pinnacle National Bank, N.A. (as Admin Agent — for TLB consent fee distribution)	Daniel Wexford, Managing Director, Loan Restructuring Group	[Bank Name]	[ABA]	[Account No.]	Pinnacle National Bank, N.A. — Agent Distribution Account	Stonefield LG — TLB Consent Fee — Closing 12/19/2023	1425000
2	Pinnacle National Bank, N.A. (as Admin Agent — for Revolver consent fee distribution)	Daniel Wexford	[Bank Name]	[ABA]	[Account No.]	Pinnacle National Bank, N.A. — Agent Distribution Account	Stonefield LG — Revolver Consent Fee — Closing 12/19/2023	87500
3	Calderwood & Harkness LLP	Colette Whitman, Billing Partner	[Bank Name]	[ABA]	[Account No.]	Calderwood & Harkness LLP — Client Trust / Operating	Matter No. 1012-00002 — Stonefield Restructuring	2850000
4	Hargrove Advisory Group LLC	Elena Voss, Managing Director	[Bank Name]	[ABA]	[Account No.]	Hargrove Advisory Group LLC	Stonefield — Completion Fee + Monthly Retainer Balances	3200000
5	Westlake Harden & Cole LLP	Ramona Quelibo, Lead Partner	[Bank Name]	[ABA]	[Account No.]	Westlake Harden & Cole LLP — Operating	Stonefield — First Lien Counsel Reimbursement	1400000
6	Thornbury McCaffrey LLP	Alan Driscoll, Lead Partner	[Bank Name]	[ABA]	[Account No.]	Thornbury McCaffrey LLP — Operating	Stonefield — Mezz Ad Hoc Counsel Reimbursement	1100000
7	Meridian Veltrian Partners LLC	Per engagement letter	[Bank Name]	[ABA]	[Account No.]	Meridian Veltrian Partners LLC	Stonefield — Mezz Ad Hoc FA Reimbursement	900000
8	Northgate Specialty Insurance Company	Per policy NSI-DOL-2023-07721	[Bank Name]	[ABA]	[Account No.]	Northgate Specialty Insurance Company — Premium Account	Stonefield D&O Tail — Policy NSI-DOL-2023-07721	475000
9	Continental Fiduciary Trust Company / DE Secretary of State / Other Admin	Continental Fiduciary — 100 Wall Street, 15th Floor, New York, NY 10005	[Bank Name]	[ABA]	[Account No.]	Continental Fiduciary Trust Company — Trustee Fees	Stonefield — Supplemental Indenture / Note Cancellation / CUSIP 861537 AA 2	225000
10	Stonefield Logistics Group Inc. — Operating Account	Priya Sundaram, CFO	Pinnacle National Bank, N.A.	[ABA]	[Account No.]	Stonefield Logistics Group Inc. — Operating Account	Residual Closing Proceeds — 12/19/2023	43637500
TOTAL OUTGOING WIRES	56400000

[sheet: Notes & Approvals]

Item	Detail
Transaction	Consensual Out-of-Court Restructuring of Stonefield Logistics Group Inc.
Closing Date	December 19, 2023
Key Closing Documents Executed Prior to Funding	Amended and Restated Intercreditor Agreement (11/10/2023); Super-Priority Credit Agreement (11/17/2023); Amended and Restated First Lien Credit Agreement (12/1/2023); Exchange Agreement and Supplemental Indenture (12/8/2023); Amended and Restated Stockholders' Agreement, Amended Certificate of Incorporation, Certificate of Designations, Registration Rights Agreement (12/12/2023); Ridgeline equity contribution funded to escrow (12/15/2023)
Closing Conditions	Satisfaction of all conditions precedent under Super-Priority Credit Agreement and Amended Credit Agreement, including delivery of Officer's Certificate (Priya Sundaram, CFO), Secretary's Certificate (Howard Kessler, GC), legal opinion letter (Calderwood & Harkness LLP / Nathaniel Bower), and board resolutions dated 12/11/2023
Sequence of Wires	1. Belvedere super-priority funding wire ($43,900,000 net) to Stonefield escrow account at Pinnacle; 2. Release of Ridgeline equity contribution ($12,500,000) from escrow; 3. Outgoing wires for consent fees, transaction costs, and insurance; 4. Residual to Stonefield operating account
Super-Priority Facility — Unfunded DDTL	$10,000,000 delayed-draw term loan remains undrawn at closing; 1.00% commitment fee on undrawn balance payable quarterly; available for draw per terms of Super-Priority Credit Agreement
Mezzanine Notes Cancellation	All exchanged mezzanine notes (CUSIP 861537 AA 2) cancelled upon closing per Exchange Agreement and Supplemental Indenture (12/8/2023); $140.0M principal + $8.1M accrued PIK extinguished; non-consenting holders ($5.5M) subject to exit consent amendments stripping covenants
Post-Restructuring Capital Structure	Super-Priority TL: $55.0M (SOFR+700, 12/19/2027)	Amended Revolver: $35.0M committed (SOFR+450, 12/19/2027)	Amended TLB: $285.0M (SOFR+500, 12/19/2028)	Total funded debt: $375.0M	Post-restructuring leverage: 7.2x on FY 2024E EBITDA of $52.0M
Pro Forma Equity Ownership	Ridgeline Capital Partners Fund III, L.P.: 47.5% common	Mezzanine equitization recipients: 47.5% common + Series A Preferred ($35.0M liq pref, 10.00% PIK)	Management (MIP): 5.0% common
Board Composition Post-Closing	3 Ridgeline designees (including Julian Voight, Serena Chu)	3 mezzanine holder designees	1 independent director
Timing	All wires to be initiated by 10:00 AM ET on December 19, 2023; confirmation of receipt required from all payees by 2:00 PM ET
Prepared By	Gabrielle Moss, Working Associate, Calderwood & Harkness LLP
Approved — Company CFO	Priya Sundaram, Chief Financial Officer, Stonefield Logistics Group Inc. — Date: December 18, 2023
Approved — Debtor's Counsel	Nathaniel Bower, Responsible Partner, Calderwood & Harkness LLP — Date: December 18, 2023
Approved — Administrative Agent	Daniel Wexford, Managing Director, Pinnacle National Bank, N.A. — Date: _______________
Approved — Super-Priority Agent	Christopher Hartigan, Managing Partner, Belvedere Credit Opportunities Fund LP — Date: _______________

[sheet: Cover]
Field | Value
Document Title | Funds Flow Memorandum
Transaction | Consensual Out-of-Court Restructuring of Stonefield Logistics Group Inc.
Date of Memorandum | December 18, 2023
Closing Date | December 19, 2023
Matter Number | 1012-00002
Prepared By | Gabrielle Moss, Working Associate, Calderwood & Harkness LLP
Reviewed By | Nathan Ikeda, Lead Associate, Calderwood & Harkness LLP
Approved By | Priya Sundaram, Chief Financial Officer, Stonefield Logistics Group Inc.
Governing Law | State of New York
Borrower | Stonefield Logistics Group Inc.
Borrower Address | 4200 Commerce Street, Suite 1500, Dallas, TX 75201
Borrower EIN | 83-2457109
CONFIDENTIAL — PRIVILEGED | This memorandum is prepared for the exclusive use of the parties to the restructuring transactions and their advisors.
[sheet: Sources]
Line Item No. | Source Description | Provider Entity | Wire From Account | Gross Amount ($) | OID / Deductions ($) | Net Amount ($) | Notes
1 | Super-Priority Term Loan — Initial Funding | Belvedere Credit Opportunities Fund LP | Belvedere — account at 450 Lexington Avenue, 30th Floor, New York, NY 10017 | 45000000 | 1100000 | 43900000 | $55.0M total facility ($45.0M funded at close, $10.0M delayed-draw term loan); OID of 2.00% on $55.0M commitment = $1,100,000 deducted from initial funding; SOFR + 700 bps (100 bps floor); maturity 12/19/2027
2 | Ridgeline Capital Partners Fund III, L.P. — New Cash Equity Contribution | Ridgeline Capital Partners Fund III, L.P. | Ridgeline — account at 300 Park Avenue, 28th Floor, New York, NY 10022 | 12500000 | 0 | 12500000 | Sponsor equity contribution to fund transaction costs and liquidity cushion; funded 12/15/2023 into escrow, released at closing 12/19/2023
TOTAL SOURCES | 57500000 | 1100000 | 56400000
[sheet: Uses]
Line Item No. | Category | Use Description | Payee Entity | Wire To Account / Instructions | Amount ($) | Notes
1 | Consent Fees | First Lien Term Loan B Consent Fee — 50 bps | Consenting TLB Lenders (via Pinnacle National Bank, N.A. as Administrative Agent) | Pinnacle National Bank, N.A. — 200 Liberty Street, New York, NY 10281; for distribution to consenting TLB lenders pro rata | 1425000 | $285.0M outstanding TLB × 0.50% = $1,425,000; payable to lenders holding $228.5M (80.2%) who consented, distributed pro rata by Pinnacle as agent
2 | Consent Fees | Revolving Credit Facility Consent Fee — 25 bps | Consenting Revolver Lenders (via Pinnacle National Bank, N.A. as Administrative Agent) | Pinnacle National Bank, N.A. — 200 Liberty Street, New York, NY 10281; for distribution to Pinnacle ($20.0M commitment), Great Basin Commercial Bank ($15.0M commitment reduced pro rata), Tidewater Lending Corporation ($15.0M commitment reduced pro rata) | 87500 | $35.0M reduced commitment × 0.25% = $87,500; all 3 revolver lenders consented unanimously
Subtotal — Consent Fees | 1512500
3 | Legal Fees — Debtor's Counsel | Calderwood & Harkness LLP — Legal Fees (estimated) | Calderwood & Harkness LLP | C&H — 599 Lexington Avenue, New York, NY 10022 | 2850000 | Includes standard hourly fees plus $750,000 success fee upon closing; $100,000 retainer previously paid credited; Matter No. 1012-00002; Billing Partner: Colette Whitman
4 | Financial Advisory Fees — Debtor's Advisor | Hargrove Advisory Group LLC — Financial Advisory Fees | Hargrove Advisory Group LLC | Hargrove — 1345 Avenue of the Americas, 38th Floor, New York, NY 10105 | 3200000 | Monthly retainer fees plus completion fee; retained by Stonefield Board effective March 15, 2023; Managing Director: Elena Voss
5 | Legal Fees — First Lien Lenders' Counsel | Westlake Harden & Cole LLP — Legal Fees (estimated; reimbursed by Company) | Westlake Harden & Cole LLP | WHC — 787 Seventh Avenue, 34th Floor, New York, NY 10019 | 1400000 | Counsel to first lien lender group; Lead Partner: Ramona Quelibo; Associate: Gregory Noll; fees reimbursed by Stonefield per Credit Agreement
6 | Legal Fees — Mezzanine Ad Hoc Group Counsel | Thornbury McCaffrey LLP — Legal Fees (estimated; reimbursed by Company) | Thornbury McCaffrey LLP | TM — 375 Park Avenue, 25th Floor, New York, NY 10152 | 1100000 | Counsel to ad hoc group of mezzanine holders (Graystone, Ashland, Dunmore); Lead Partner: Alan Driscoll; Associate: Monica Firth; fees reimbursed by Stonefield per RSA
Subtotal — Legal Fees (all counsel) | 5350000
7 | Financial Advisory Fees — Mezzanine Ad Hoc Group Advisor | Meridian Veltrian Partners LLC — Financial Advisory Fees (reimbursed by Company) | Meridian Veltrian Partners LLC | Meridian — 660 Fifth Avenue, 18th Floor, New York, NY 10103 | 900000 | Financial advisor to ad hoc mezzanine group; fees reimbursed by Stonefield per RSA
Subtotal — Financial Advisory Fees | 4100000
8 | Insurance | D&O Tail Insurance Premium | Northgate Specialty Insurance Company | Northgate Specialty — per carrier wire instructions | 475000 | Policy No. NSI-DOL-2023-07721; $15.0M D&O coverage; Side A DIC and ABC structure; 6-year tail period from closing
Subtotal — Insurance | 475000
9 | Filing / Administrative / Trustee Fees | Filing, administrative, and trustee fees | Various (Continental Fiduciary Trust Company, DE Secretary of State, and others) | Continental Fiduciary Trust Company — 100 Wall Street, 15th Floor, New York, NY 10005; plus DE SOS filing fees and other administrative | 225000 | Includes trustee fees to Continental Fiduciary for Supplemental Indenture / note cancellation; DE Secretary of State filing fees for Amended Certificate of Incorporation and Certificate of Designations (DE File No. 6341872); UCC filing fees
Subtotal — Filing / Admin / Trustee | 225000
10 | OID (Deducted at Source) | Super-Priority OID — 2.00% | Retained by Belvedere Credit Opportunities Fund LP (netted from funding) | N/A — netted from super-priority funding wire | 1100000 | $55.0M × 2.00% = $1,100,000; deducted from initial $45.0M funding, resulting in net wire of $43,900,000
Subtotal — OID (Deducted at Source) | 1100000
TOTAL USES BEFORE RESIDUAL | 12762500
11 | Residual Cash to Company | Residual cash — deposited to Stonefield operating account | Stonefield Logistics Group Inc. | Stonefield operating account at Pinnacle National Bank, N.A. — 200 Liberty Street, New York, NY 10281 | 43637500 | Calculated as Total Net Sources minus all other Uses; residual to bolster liquidity
GRAND TOTAL USES | 56400000
[sheet: Sources & Uses Summary]
Line | Description | Amount ($)
SOURCES
S-1 | Super-Priority Term Loan — Gross Funding (Belvedere Credit Opportunities Fund LP) | 45000000
S-2 | Less: OID (2.00% on $55.0M commitment) | -1100000
S-3 | Super-Priority Term Loan — Net Proceeds | 43900000
S-4 | Ridgeline Capital Partners Fund III, L.P. — New Cash Equity Contribution | 12500000
TOTAL NET SOURCES | 56400000
USES
U-1 | TLB Consent Fee (50 bps on $285.0M) | 1425000
U-2 | Revolver Consent Fee (25 bps on $35.0M) | 87500
U-3 | Calderwood & Harkness LLP — Legal Fees (debtor's counsel) | 2850000
U-4 | Hargrove Advisory Group LLC — Financial Advisory Fees (debtor's advisor) | 3200000
U-5 | Westlake Harden & Cole LLP — Legal Fees (first lien counsel; Company-reimbursed) | 1400000
U-6 | Thornbury McCaffrey LLP — Legal Fees (mezz ad hoc group counsel; Company-reimbursed) | 1100000
U-7 | Meridian Veltrian Partners LLC — Financial Advisory Fees (mezz advisor; Company-reimbursed) | 900000
U-8 | D&O Tail Insurance Premium (Northgate Specialty Insurance Company) | 475000
U-9 | Filing / Administrative / Trustee Fees | 225000
U-10 | OID (netted from super-priority funding at source) | 1100000
U-11 | Residual Cash to Stonefield Operating Account (Pinnacle National Bank, N.A.) | 43637500
TOTAL USES | 56400000
BALANCE CHECK (Sources minus Uses) | 0
[sheet: Wire Instructions]
Payee No. | Payee Entity | Payee Contact | Bank Name | ABA / Routing No. | Account No. | Account Name | Reference | Amount ($)
1 | Pinnacle National Bank, N.A. (as Admin Agent — for TLB consent fee distribution) | Daniel Wexford, Managing Director, Loan Restructuring Group | [Bank Name] | [ABA] | [Account No.] | Pinnacle National Bank, N.A. — Agent Distribution Account | Stonefield LG — TLB Consent Fee — Closing 12/19/2023 | 1425000
2 | Pinnacle National Bank, N.A. (as Admin Agent — for Revolver consent fee distribution) | Daniel Wexford | [Bank Name] | [ABA] | [Account No.] | Pinnacle National Bank, N.A. — Agent Distribution Account | Stonefield LG — Revolver Consent Fee — Closing 12/19/2023 | 87500
3 | Calderwood & Harkness LLP | Colette Whitman, Billing Partner | [Bank Name] | [ABA] | [Account No.] | Calderwood & Harkness LLP — Client Trust / Operating | Matter No. 1012-00002 — Stonefield Restructuring | 2850000
4 | Hargrove Advisory Group LLC | Elena Voss, Managing Director | [Bank Name] | [ABA] | [Account No.] | Hargrove Advisory Group LLC | Stonefield — Completion Fee + Monthly Retainer Balances | 3200000
5 | Westlake Harden & Cole LLP | Ramona Quelibo, Lead Partner | [Bank Name] | [ABA] | [Account No.] | Westlake Harden & Cole LLP — Operating | Stonefield — First Lien Counsel Reimbursement | 1400000
6 | Thornbury McCaffrey LLP | Alan Driscoll, Lead Partner | [Bank Name] | [ABA] | [Account No.] | Thornbury McCaffrey LLP — Operating | Stonefield — Mezz Ad Hoc Counsel Reimbursement | 1100000
7 | Meridian Veltrian Partners LLC | Per engagement letter | [Bank Name] | [ABA] | [Account No.] | Meridian Veltrian Partners LLC | Stonefield — Mezz Ad Hoc FA Reimbursement | 900000
8 | Northgate Specialty Insurance Company | Per policy NSI-DOL-2023-07721 | [Bank Name] | [ABA] | [Account No.] | Northgate Specialty Insurance Company — Premium Account | Stonefield D&O Tail — Policy NSI-DOL-2023-07721 | 475000
9 | Continental Fiduciary Trust Company / DE Secretary of State / Other Admin | Continental Fiduciary — 100 Wall Street, 15th Floor, New York, NY 10005 | [Bank Name] | [ABA] | [Account No.] | Continental Fiduciary Trust Company — Trustee Fees | Stonefield — Supplemental Indenture / Note Cancellation / CUSIP 861537 AA 2 | 225000
10 | Stonefield Logistics Group Inc. — Operating Account | Priya Sundaram, CFO | Pinnacle National Bank, N.A. | [ABA] | [Account No.] | Stonefield Logistics Group Inc. — Operating Account | Residual Closing Proceeds — 12/19/2023 | 43637500
TOTAL OUTGOING WIRES | 56400000
[sheet: Notes & Approvals]
Item | Detail
Transaction | Consensual Out-of-Court Restructuring of Stonefield Logistics Group Inc.
Closing Date | December 19, 2023
Key Closing Documents Executed Prior to Funding | Amended and Restated Intercreditor Agreement (11/10/2023); Super-Priority Credit Agreement (11/17/2023); Amended and Restated First Lien Credit Agreement (12/1/2023); Exchange Agreement and Supplemental Indenture (12/8/2023); Amended and Restated Stockholders' Agreement, Amended Certificate of Incorporation, Certificate of Designations, Registration Rights Agreement (12/12/2023); Ridgeline equity contribution funded to escrow (12/15/2023)
Closing Conditions | Satisfaction of all conditions precedent under Super-Priority Credit Agreement and Amended Credit Agreement, including delivery of Officer's Certificate (Priya Sundaram, CFO), Secretary's Certificate (Howard Kessler, GC), legal opinion letter (Calderwood & Harkness LLP / Nathaniel Bower), and board resolutions dated 12/11/2023
Sequence of Wires | 1. Belvedere super-priority funding wire ($43,900,000 net) to Stonefield escrow account at Pinnacle; 2. Release of Ridgeline equity contribution ($12,500,000) from escrow; 3. Outgoing wires for consent fees, transaction costs, and insurance; 4. Residual to Stonefield operating account
Super-Priority Facility — Unfunded DDTL | $10,000,000 delayed-draw term loan remains undrawn at closing; 1.00% commitment fee on undrawn balance payable quarterly; available for draw per terms of Super-Priority Credit Agreement
Mezzanine Notes Cancellation | All exchanged mezzanine notes (CUSIP 861537 AA 2) cancelled upon closing per Exchange Agreement and Supplemental Indenture (12/8/2023); $140.0M principal + $8.1M accrued PIK extinguished; non-consenting holders ($5.5M) subject to exit consent amendments stripping covenants
Post-Restructuring Capital Structure | Super-Priority TL: $55.0M (SOFR+700, 12/19/2027) | Amended Revolver: $35.0M committed (SOFR+450, 12/19/2027) | Amended TLB: $285.0M (SOFR+500, 12/19/2028) | Total funded debt: $375.0M | Post-restructuring leverage: 7.2x on FY 2024E EBITDA of $52.0M
Pro Forma Equity Ownership | Ridgeline Capital Partners Fund III, L.P.: 47.5% common | Mezzanine equitization recipients: 47.5% common + Series A Preferred ($35.0M liq pref, 10.00% PIK) | Management (MIP): 5.0% common
Board Composition Post-Closing | 3 Ridgeline designees (including Julian Voight, Serena Chu) | 3 mezzanine holder designees | 1 independent director
Timing | All wires to be initiated by 10:00 AM ET on December 19, 2023; confirmation of receipt required from all payees by 2:00 PM ET
Prepared By | Gabrielle Moss, Working Associate, Calderwood & Harkness LLP
Approved — Company CFO | Priya Sundaram, Chief Financial Officer, Stonefield Logistics Group Inc. — Date: December 18, 2023
Approved — Debtor's Counsel | Nathaniel Bower, Responsible Partner, Calderwood & Harkness LLP — Date: December 18, 2023
Approved — Administrative Agent | Daniel Wexford, Managing Director, Pinnacle National Bank, N.A. — Date: _______________
Approved — Super-Priority Agent | Christopher Hartigan, Managing Partner, Belvedere Credit Opportunities Fund LP — Date: _______________

[sheet: Cover]

SOURCES

Record

Parties

Dates

Amounts