Roadrunner enters into amendment, consent and waiver to revolver

By Tali Rackner

Norfolk, Va., June 23 – Roadrunner Transportation Systems, Inc. entered into a consent, waiver and first amendment to its sixth amended and restated credit agreement on June 17, according to an 8-K filing with the Securities and Exchange Commission.

U.S. Bank NA is the administrative agent, swingline lender and letter-of-credit issuer.

The amendment reduces the revolving line of credit under the senior credit facility to $300 million from $400 million and modifies the minimum fixed-charge coverage ratio and maximum cash flow leverage ratio for certain future periods.

It also amends the definition of EBITDA to include an add-back for certain reasonable and documented costs and expenses incurred in connection with terminal shutdowns, driver releases and related rental exit transaction costs incurred during fiscal 2016.

In addition, U.S. Bank and the lenders consented to the formation and operation of, and certain other matters related to, Velocity Insurance Co., a risk retention group and a newly formed subsidiary designed to assist Roadrunner in its strategy to modify its automobile insurance liability program, and waived a default relating to the formation of the risk retention group.

Roadrunner is an asset-light transportation and logistics service provider based in Cudahy, Wis.

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