Roadrunner Transportation closes facilities totaling $261.1 million

By Wendy Van Sickle

Columbus, Ohio, March 4 – Roadrunner Transportation Systems, Inc. closed on a new $200 million five-year asset-based lending facility and a five-year $61.1 million term loan facility in multiple tranches on Feb. 28, according to an 8-K filing with the Securities and Exchange Commission.

ABL facility

BMO Harris Bank, NA is the administrative agent and a joint lead arranger and bookrunner along with Bank of America, NA and Wells Fargo Bank, NA.

The credit agreement contains sublimits of $15 million for first-in-last-out loans, $20 million for swing line loans and $30 million for letters of credit.

There is a $100 million accordion feature.

The credit agreement matures on Feb. 28, 2024.

Borrowings bear interest at Libor plus a margin ranging from 150 basis points to 200 bps for non-FILO loans. The margin above Libor ranges from 250 bps to 300 bps for FILO loans.

The ABL credit agreement contains a minimum fixed-charge coverage ratio financial covenant that must be maintained when excess availability falls below a specified amount.

The company used the initial proceeds from the ABL credit facility for working capital purposes and to repay in full its existing credit facility.

Term loan

BMO Harris Bank is administrative agent, and BMO Capital Markets Corp. is lead arranger and bookrunner.

The term loan credit facility consists of an approximately $61.1 million term loan facility, including about $40.3 million of tranche A term loans; about $2.5 million of tranche A FILO term loans; about $8.3 million of tranche B term loans; and a $10 million asset-based facility available to finance future capital expenditures.

The term loan credit facility matures on Feb. 28, 2024. Principal on each of the tranche A term loans and the tranche B term loans is due in quarterly installments based upon a 4.5-year amortization schedule, starting on Sept. 1, 2019.

Principal on the tranche A FILO term loans is due at maturity date, unless earlier accelerated.

Principal on each draw under the capital expenditure facility is due in quarterly installments based upon a five-year amortization schedule, beginning on the first day of the first full fiscal quarter immediately following the making of any capital expenditure loan.

Borrowings bear interest at Libor plus an applicable margin of 750 basis points for tranche A term loans, tranche B term loans and capital expenditure loans and 850 bps for tranche A FILO term loans.

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

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