Pacer completes $250 million revolving credit facility

By Jennifer Chiou

New York, April 9 - Pacer International Inc. said it entered into a $250 million five-year revolving credit facility.

About $59 million of the new facility was used to repay the balance of its existing credit facility, which was terminated.

Banc of America Securities LLC and BMO Capital Markets were joint lead arrangers, on the deal, which closed April 5. Bank of America, NA was administrative agent, Bank of Montreal was syndication agent and Union Bank of California, NA, LaSalle Bank NA and Deutsche Bank Trust Co. Americas were documentation agents.

Interest is set by a grid and can range from Libor plus 62.5 basis points to Libor plus 175 bps, depending on the company's leverage ratio. Initially the rate is Libor plus 75 bps. The commitment fee is from 12.5 to 35 bps and 15 bps to start.

The new facility is secured by a pledge of all of the stock of Pacer's domestic subsidiaries and a portion of the stock or other equity interests of certain of its foreign subsidiaries.

"As a result of our continuing strong cash flow, we were able to complete this refinancing, and it will bring additional savings to our bottom line," chairman and chief executive officer Mike Uremovich said in a news release.

The company added that it estimates that its pre-tax annualized financing costs will be reduced by $1.5 million.

Pacer is a Concord, Calif.-based provider of logistics and freight transportation services.

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