U.S. Xpress Enterprises has refinanced its senior credit facility.
Highlights of the transaction are:
- New facility lowered interest rates and increased flexibility
- Former facility was fully paid off with proceeds of new facility and contemporaneous real estate and equipment financings
- Estimated availability of over $100 million following post-closing activities
“We appreciate the continued support from our lenders, with Bank of America, JP Morgan Chase Bank, Wells Fargo Bank, and Regions Bank all remaining in our bank group. The refinancing will support several of our goals including improved pricing, the ability to grow our borrowing base with the business, and adding flexibility to execute our plan to convert a significant portion of our fleet from operating lease financing to owned financing over time, to optimize our tax and trade-in positions,” said Eric Peterson, chief financial officer.
The new credit facility consists of a $250 million loan with an uncommitted ability to increase to $325 million available for five years.
Contemporaneously with closing the new revolving credit facility, the company is completing approximately $100 million in tractor and real estate financings, with proceeds used to pay off a portion of the prior credit agreement. In addition, the company is completing the perfection process on real estate that is expected to bring available borrowing capacity to more than $100 million in the near term.
In connection with the aforementioned transactions, the company expects to record a non-cash write-off of approximately $0.5 million in deferred financing costs, and approximately $0.2 million in new financing costs, in the first quarter of 2020.
Founded in 1985, U.S. Xpress Enterprises is the nation’s fifth largest asset-based truckload carrier by revenue, providing services primarily throughout the U.S.