Forward Air to launch $925 million term loan B on Monday

By Sara Rosenberg

New York, Sept. 7 – Forward Air Corp. is set to hold a lender call at 10:30 a.m. ET on Monday to launch a $925 million senior secured term loan B, according to a market source.

Citigroup Global Markets Inc. is the left lead on the deal. According to filings with the Securities and Exchange Commission, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and JPMorgan Chase Bank are also part of the debt commitment group.

The debt commitment, as outlined in the filings, was for $1.85 billion of debt in the form of a senior secured bridge loan and a senior secured first-lien term loan B and for a $400 million senior secured revolving credit facility.

Proceeds will be used to support the acquisition of Omni Logistics LLC from Ridgemont Equity Partners and EVE Partners LLC.

Under the agreement, Omni shareholders will receive $150 million in cash and Forward common stock and perpetual non-voting convertible preferred stock. At the closing of the transaction, Omni shareholders will own 37.7% of the combined company on a fully diluted, as-converted basis.

The new debt will be used with cash on hand to refinance existing debt at both companies and to pay the consideration and other amounts in connection with the transaction.

Closing is expected this year, subject to the receipt of regulatory approvals and other customary conditions.

Forward Air is a Greeneville, Tenn.-based provider of transportation services. Omni is a Dallas-based logistics and supply chain management company.

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