Forward Air enters $150 million five-year senior unsecured revolver

By Tali Rackner

Minneapolis, Oct. 3 – Forward Air Corp. entered into a $150 million five-year senior unsecured revolving credit facility on Sept. 29 with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility includes a sublimit of $30 million for letters of credit and a sublimit of $30 million for swingline loans.

There is an up to $100 million accordion feature, available in the form of additional revolving credit loans, term loans or a combination.

The facility is scheduled to mature in September 2022 and may be used to refinance existing debt and for working capital, capital expenditures and other general corporate purposes.

Interest is equal to Libor plus 125 basis points to 175 bps, depending on the company’s consolidated leverage ratio. Initially, the margin is 125 bps.

The initial commitment fee is 17.5 bps and ranges from 17.5 bps to 22.5 bps, also based on leverage.

The facility refinances an existing unsecured credit facility under the credit agreement dated as of Feb. 4, 2015, which was terminated.

U.S. Bank NA acted syndication agent and was also a joint lead arranger and bookrunner with BofA Merrill Lynch.

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

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