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U.S. Xpress Enterprises enters into $250 million five-year revolver
By Wendy Van Sickle
Columbus, Ohio, Jan. 28 – U.S. Xpress Enterprises, Inc. entered into a credit agreement on Tuesday for a $250 million revolver, according to an 8-K filing with the Securities and Exchange Commission.
Subsidiary borrowers include U.S. Xpress, Inc., Xpress Shell, Inc., U.S. Xpress Leasing, Inc., Total Logistics, Inc., Associated Developments, LLC and Total Transportation of Mississippi LLC.
Bank of America, NA is the administrative agent. JPMorgan Chase Bank, Wells Fargo and Regions Bank are also members of the banking group.
Borrowings are subject to a borrowing base.
There is a letter-of-credit sub-facility totaling $75 million and a swingline sub-facility totaling $25 million.
An accordion feature allows the company to request an increase in the borrowing amounts under the revolver by a maximum amount of $75 million.
The revolver matures on Jan. 28, 2025.
Borrowings accrue interest at Libor plus an applicable margin ranging from 125 basis points to 175 bps, based on excess availability. At closing, the applicable margin was down by 100 bps over the most recent pricing of the previous facility, the company said.
The commitment fee ranges from 25 bps to 35 bps.
Contemporaneously with closing the new revolver, the company is completing about $100 million in tractor and real estate financings, with proceeds used to pay off a portion of the prior credit agreement. In addition, U.S. Xpress said it is completing the perfection process on real estate that is expected to bring available borrowing capacity to over $100 million in the near term.
The credit agreement requires the company to meet specified financial ratios and tests.
U.S. Xpress is a Chattanooga, Tenn.-based intermodal freight company.
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