Forward Air reduces revolver to $340 million, tweaks covenant

By Wendy Van Sickle

Columbus, Ohio, Feb. 15 – Forward Air Corp. subsidiary Clue Opco LLC entered into a second amendment to its Dec. 19, 2023 credit agreement with Citibank, NA as administrative agent on Feb. 12, according to an 8-K filing with the Securities and Exchange Commission.

The amendment reduces revolving commitments to $340 million from $400 million and modifies the financial performance covenant by temporarily increasing the maximum consolidated first-lien net leverage ratio permitted by the covenant to 6x for the second and third quarters of 2024; 5.5x for the fourth quarter of 2024; 5.25x for the first quarter of 2025; 5x for the second quarter of 2025; and 4.75x for the third quarter of 2025. Prior to the amendment the ratio was at 4.5x.

Also on Feb. 12, Clue Opco repaid $80 million of term B loans outstanding under the credit agreement along with accrued interest.

Greeneville, Tenn.-based Forward Air provides surface transportation and related logistics services to the North American air freight market.

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