Roadrunner, lenders enter forbearance agreement through March 31

By Wendy Van Sickle

Columbus, Ohio, March 6 – Roadrunner Transportation Systems, Inc. entered into a forbearance agreement and second amendment to its sixth amended and restated credit agreement effective Feb. 27, according to an 8-K filing with the Securities and Exchange Commission.

Specifically, the lenders agreed to forbear from exercising the remedies available under Roadrunner’s senior secured credit agreement regarding some events of default until March 31 or the earliest of a breach by the company of any of its covenants in the amendment, any other default or event of default under the credit agreement or other specified events.

The amendment also amends some credit agreement covenants and other provisions, requires some company reporting and information and imposes other obligations on the company.

In November, the administrative agent and lenders waived the default resulting from the company’s anticipated non-compliance with, and any actual or potential event of default resulting from such a non-compliance with, the cash flow leverage ratio financial covenant for the four quarters ended Sept. 30.

Additionally, the revolving line of credit was reduced on that date to $250 million from $300 million.

U.S. Bank NA is the administrative agent.

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

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