Neovia Logistics L.P.

Overview Key strengths Key risks Global footprint with some longstanding customer relationships. Multiple maturities going current over the next 12 months despite out-of-court restructuring in November 2022. Progress made on new customer wins and contract repricing. Expected negative free cash flow in 2023 with limited generation expected in 2024. Meaningful customer concentration and history of contract attrition. Uncertainty on timing and execution of post-restructuring turnaround plan. The restructuring completed in late 2022 provided some relief in 2023; however, Neovia's liquidity will likely remain constrained in 2024 as the company works through its turnaround plan. Neovia has $23 million available under its $80 million securitization facility (due June 2025) and $42 million available under its $65 million revolving credit facility (due

...Multiple maturities will become current in 2024, increasing Neovia's refinancing risk. The restructuring completed in late 2022 provided some relief in 2023; however, Neovia's liquidity will likely remain constrained in 2024 as the company works through its turnaround plan. Neovia has $23 million available under its $80 million securitization facility (due June 2025) and $42 million available under its $65 million revolving credit facility (due August 2025) as of the end of the third quarter 2023. Both facilities will be current before the end of 2024, and we do not expect the company will have sufficient cash on hand (about $28 million on the balance sheet at the close of third quarter 2023) or be able to generate meaningfully positive free operating cash flow (FOCF) to address repayment before the facilities mature in 2025. We note that when Neovia restructured we assumed the company would realize cash interest savings from the lower debt burden. However, the higher-for-longer interest...

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