Universal Logistics lifts revolver; UACL enters $90 million agreement

By Wendy Van Sickle

Columbus, Ohio, Oct. 3 – Universal Logistics Holdings, Inc. amended its credit facility with KeyBank NA as administrative agent on Sept. 30 to increase the revolving commitment to $400 million, while subsidiary UACL Logistics Holdings LLC entered into a new credit agreement providing for up to $90 million, according to an 8-K filing with the Securities and Exchange Commission.

Keybanc Capital Markets, Inc., Huntington National Bank and U.S. Bank NA are the joint lead arrangers and bookrunners.

Huntington and U.S. Bank are the syndication agents.

Comerica Bank is the documentation agent.

Universal Logistics revolver

The commitment may be further increased by up to $200 million upon request. At closing, about $89.4 million was borrowed to pay off existing debt under the original credit agreement.

The credit agreement matures on Sept. 30, 2027.

Borrowings bear interest at index-adjusted SOFR plus a margin that is initially 150 basis points and can fluctuate based on leverage ratio.

There is a commitment fee that is initially 8 bps per annum and may also vary based on leverage ratio.

Financial covenants require minimum fixed-charge coverage and leverage ratios.

UACL revolver

The $90 million total includes an $80 million term loan and a $10 million revolver.

There is a $30 million accordion feature.

Term loan proceeds were advanced at closing and mature on Sept. 30, 2027. The term loan will be repaid in consecutive quarterly installments, as defined in the UACL credit agreement, commencing Dec. 31, with the remaining balance due at maturity.

The revolver matures on Sept. 30, 2027.

Borrowings bear interest at index-adjusted SOFR plus a margin that is initially 175 bps and can fluctuate based leverage ratio.

There is a commitment fee that is initially 10 bps per annum and may also vary based on leverage ratio.

Proceeds may be used for working capital and other general corporate purposes.

Warren, Mich.-based Universal Logistics is a full-service provider of customized transportation and logistics solutions.

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