| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers U > Headlines for USA Truck Inc. > News item |
USA Truck enters into $225 million five-year revolving facility
By Sarah Lizee
Olympia, Wash., Feb. 1 – USA Truck, Inc. entered into a $225 million five-year senior secured revolving credit facility on Thursday with Bank of America, NA as agent, according to an 8-K filing with the Securities and Exchange Commission.
The facility amends and restates the terms of the company’s existing $170 million five-year senior secured revolver dated Feb. 5, 2015.
The revolver carries an accordion feature that allows the company to request an increase of up to $75 million, exercisable in increments of $20 million.
The facility is scheduled to terminate on Jan. 31, 2024.
Borrowings bear interest at Libor plus an applicable margin that is set at 125 basis points through June 30 and adjusted quarterly onwards between 125 bps and 175 bps based on the company’s consolidated fixed charge coverage ratio.
The revolver contains a letter of credit sub-facility in a total amount of $15 million and a swingline sub-facility in a total amount of $25 million.
There is an unused line fee of 25 bps.
The revolver is secured by a continuing pledge of substantially all of the company's assets, with the notable exclusion of any real estate or revenue equipment financed outside the credit facility.
The facility contains a single springing financial covenant, which requires a consolidated fixed charge coverage ratio of at least 1 to 1. The financial covenant springs only in the event excess availability under the credit facility drops below 10% of the lenders’ total commitments.
Proceeds from the revolver will be used to finance the company’s existing debt, finance ongoing working capital needs, capital expenditures and for general corporate purposes.
Other participants in the financing included BMO Harris Bank NA and SunTrust Robinson Humphrey, Inc. as joint lead arrangers and joint bookrunners and PNC Bank.
The company is a truckload carrier based in Van Buren, Ark.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.