EGL closes on upsized $300 million revolver, $100 million bridge loan

New York, Oct. 5 - EGL, Inc. said it completed an upsized $300 million revolving credit facility and a $100 million bridge loan.

The revolver, increased from $250 million, carries interest at Libor plus 150 basis points and has a 35 basis point commitment fee on the undrawn portion.

Interest can range from Libor plus 75 to 225 basis points depending on leverage.

Bank of America, NA is administrative agent, Banc of America Securities LLC is lead arranger and book manager, Wachovia Bank, NA is syndication agent and JPMorgan Chase Bank, NA and Harris NA are co-documentation agents.

The Houston-based transportation, supply chain management and information services company obtained the revolver to help finance its modified Dutch auction self-tender offer for its common stock and to refinance its previous revolver. The new loans were effective Sept. 30, and on Oct. 4 EGL borrowed $98.5 million under the revolver and $100 million under the bridge loan to buy back 8,085,958 shares at $26.00 per share.

Revolver borrowings can also be used for working capital, capital expenditures, acquisitions and investments, to pay dividends and to repurchase capital stock.

Covenants require EGL to achieve consolidated net funded debt to consolidated EBITDA for the trailing four quarters of 3.5 to 1.0 through Dec. 31, 2006 and 3.0 to 1.0 after that.

In addition consolidated EBIT to consolidated interest charges must be at least 2.5 to 1.0 through Dec. 31, 2006 and 3.0 to 1.0 after that and book accounts receivable to consolidated net funded debt must be at least 1.1 to 1.0.

The bridge loan is via Banc of America Mezzanine Finance LLC as lender and administrative agent.

Interest is at Libor plus 175 basis points for the first three months, Libor plus 200 basis points for the next three, Libor plus 275 basis points for the three after that and Libor plus 300 basis points from then until maturity.

The loan matures after 5.75 years.

Covenants are similar to the revolver.

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