U.S. Xpress closes on new $100 million credit facility

By Sara Rosenberg

New York, April 2 - U.S. Xpress Enterprises, Inc. announced Tuesday it has closed on a $100 million five-year senior secured revolver agented by Fleet Capital. Fleet Securities was lead arranger, LaSalle Bank was the syndication agent and the CIT Group/Business Credit participated in the facility, according to a company press release.

The new revolving loan matures on March 29, 2007 and has an interest rate at the option of the company of Libor plus 275 basis points or prime rate plus 125 basis points, the press release said.

Proceeds from the loan were used to repay $45 million of outstanding debt under the previous line of credit and to repay $25 million in outstanding letters of credit. As of March 31, approximately $20 million is still available under the new revolver for borrowing, the release said.

"The asset-based loan structure of this facility should provide the company with increased liquidity and flexibility to execute their business plan," said Fleet Capital senior vice president Robert Rubino in a news release.

Patrick Quinn, company co-chairman, stated: "We are pleased to have completed our new long-term revolving credit facility, which enhances our liquidity and improves our overall capital structure. Our results in the first quarter reflect improved operating performance in each of our business segments, despite the continuing soft freight environment and operating losses associated with our airport-to-airport transportation services business that was initiated in February 2001. This improved performance is due to our efforts over the last year to enhance truckload margins through higher rates, improved yields and reductions in fixed costs. For the remainder of 2002, we expect significant improvements in the profitability of each of our business segments."

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