Pacer reprices term loan, lowers rates by 50 basis points

By Sara Rosenberg

New York, Nov. 20 - Pacer International Inc. said it repriced its term loan to reduce interest rates by 50 basis points and lower annual interest expense by $1.1 million, based upon the current $222 million outstanding balance. Deutsche Bank was the lead bank on the transaction.

Furthermore, the interest rate on the term loan can be reduced further, if the company achieves certain financial ratios.

Previously, the term loan carried an interest rate of Libor plus 325 basis points, according to a filing with the Securities and Exchange Commission.

"The repricing has been made possible by Pacer International's strong financial performance and robust cash flow; its aggressive deleveraging program; and by current market conditions," said Don Orris, chairman and chief executive officer, in a company news release. "It will bring significant additional savings to the company's bottom line."

Pacer's $75 million revolver was not affected by the repricing.

The $330 million credit facility was obtained in June 2003. Since closing on the loan, the company has paid down $33 million of term loan debt. There is $65.2 million available under the revolver with $9.8 million in outstanding letters of credit.

Pacer is a Concord, Calif., third-party logistics and freight transportation provider.

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