BofA Merrill Agents USA Truck Revolver
USA Truck, a North American transportation and logistics provider, completed a $170 million senior secured revolving credit facility with a group of banks and Bank of America Merrill Lynch as agent. The facility also includes an uncommitted $80 million accordion feature. This new revolver will be used to refinance the company’s existing debt, finance ongoing working capital needs, for capital expenditures, and for general corporate purposes.
Other participants in the financing included SunTrust Bank, PNC Bank and BMO Harris Bank.
The transaction provides USA Truck with almost $100 million of liquidity at closing, substantially increasing its access to capital. The new credit facility provides the company with an immediate interest rate reduction of 75 basis points compared to its prior credit facility.
John Simone, president and chief executive officer, commented, “The new credit facility is a direct reflection of the significant progress USA Truck has made in improving our business and operational effectiveness.”
EVP and CFO Michael Borrows added, “We value the collaborative relationship we have developed with Bank of America as agent on this transaction and look forward to continuing to grow together. In addition to lowering our cost of capital, the new facility provides significant liquidity and flexibility to facilitate our future capital allocation priorities.”