Forward Air gets $150 million revolver, $125 million delayed-draw loan

By Angela McDaniels

Tacoma, Wash., Feb. 5 – Forward Air Corp., Forward Air, Inc. and some of their subsidiaries entered into a $275 million five-year senior credit facility on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The facility includes a $150 million revolving credit facility due February 2020 with a $25 million sublimit for letters of credit and a $15 million sublimit swingline loans.

The facility also includes a $125 million term loan that is available for 90 days following closing. If drawn, the term loan will have quarterly amortization payments of 11.11% and will mature in March 2017.

The facility has a $100 million accordion feature.

The initial interest rate is Libor plus 112.5 basis points for the term loan and Libor plus 125 bps for the revolver. The margin over Libor ranges from 112.5 bps to 162.5 bps for the term loan and from 125 bps to 175 bps for the revolver depending on the company’s ratio of consolidated funded debt to EBITDA.

The initial commitment fee for the revolver is 20 bps. It ranges from 20 bps to 25 bps.

The revolver may be used to refinance existing debt and for working capital, capital expenditures and other general corporate purposes.

Bank of America Merrill Lynch and First Tennessee Bank, NA are the joint lead arrangers and joint bookrunners. Bank of America, NA is the administrative agent. First Tennessee Bank is syndication agent.

The facility replaces the company’s $150 million revolver, which has been terminated.

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

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