Moody's gives U.S. Xpress notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to U.S. Xpress Enterprises, Inc.'s proposed $250 million senior secured notes due 2020.

The B3 corporate family and B3-PD probability of default ratings were affirmed.

The stable outlook was maintained.

Proceeds from the proposed notes, together with a new five-year $190 million ABL revolving credit facility (unrated), are expected to be used to refinance the company's existing senior secured credit facilities and securitization as well as pay transaction-related fees and expenses.

The proposed notes are expected to be secured by a second-lien on the assets that secure the ABL revolver and will be guaranteed by domestic subsidiaries, subject to certain exceptions.

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