Celadon Group, a long-haul freight service serving the U.S., Canada and Mexico, amended its revolving credit facility led by Bank of America.

The amendment re-set financial covenants through March 31, 2018. It also increased the maximum borrowing amount from approximately $192 million to $205 million, the maximum outstanding amount (which includes borrowings and letters of credit) from $226.3 million to $230 million and the interest rate for all borrowings to the greater of 8.0% or the applicable prime rate plus 3.75%.

Additionally, the amendment adjusted the calculation of the asset coverage ratio to permit the inclusion of up to $78.2 million of U.S. real property, and increasing the asset coverage ratio from 0.7:1.0 to 1.05:1.0 for periods ending prior to March 31, 2018, though this still excludes certain assets not consisting of U.S. real property, U.S. rolling stock, and U.S. accounts receivable.

“This amendment represents another important step towards refinancing our existing credit facility,” Paul Svindland, CEO of Celadon, said. “We expect the financial covenant relief and additional borrowing capacity to provide an appropriate time period for the refinancing process. Management continues to work diligently towards accomplishing a refinancing as early as possible.”