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Forward Air amends, upsizes credit facility to $450 million
By William Gullotti
Buffalo, N.Y., Jan. 6 – Forward Air Corp. entered into a third amendment to its five-year senior unsecured revolving credit facility on Dec. 29, according to an 8-K filing with the Securities and Exchange Commission.
The facility, upsized to $450 million from $225 million, consists of a $300 million revolver and a $150 million term loan.
The maturity date of the revolver was extended to July 20, 2026.
The amendments reset the $75 million limit on incremental loan facilities that may be incurred under the agreement and impose an upfront commitment fee of 12.5 basis points on them.
The term loan is subject to an annual mandatory repayment of principal, paid quarterly, and increase during the lifetime of the loan. The mandatory minimums total 1% per year for the first two years, 2.5% for the second two and 5% in year five. The remaining principal will be due at maturity, July 20, 2026.
Interest was changed to BSBY plus 125 bps to 175 bps, and commitment fees range from 20 bps to 25 bps, with the margins determined by the company’s consolidated leverage ratio.
Additionally, the amended facility restricts the company from obtaining third party financing for the purpose of acquisitions.
At closing, a total of $157.5 million was outstanding under the credit agreement.
Bank of America, NA is the administrative agent with U.S. Bank NA as syndication agent.
The joint lead arrangers and joint bookrunners are BofA Securities, Inc. and U.S. Bank NA.
Proceeds may be used for working capital and general corporate purposes.
Greeneville, Tenn.-based Forward Air provides surface transportation and related logistics services to the North American air freight market.
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