Heartland Express amendment results in $100 million revolver due 2021

By Wendy Van Sickle

Columbus, Ohio, Sept. 5 – Heartland Express, Inc. entered into an amendment to its credit agreement dated Nov. 11, 2013 with Wells Fargo Bank, NA to provide for a $100 million unsecured revolving line of credit on Friday, according to an 8-K filing with the Securities and Exchange Commission.

There is an accordion feature providing for a one-time increase in the revolver by up to an additional $100 million.

The sub-facility for letters of credit was increased to $30 million from $20 million, and the maturity was extended to Aug. 31, 2021.

Interest is Libor plus a margin ranging from 70 basis points to 90 bps, and the commitment fee ranges from 7.25 bps to 17.5 bps, both depending on the company’s ratio of consolidated funded debt to adjusted EBITDA.

The covenants remain substantially the same as prior to the amendment, except that the company’s tangible net worth is not to be less than $250 million.

At closing, no borrowings and $9.2 million of letters of credit were outstanding under the credit agreement, which may be used for working capital, equipment financing, permitted acquisitions, and general corporate purposes.

Based in North Liberty, Iowa, Heartland provides truckload transportation services.

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