Werner adds $75 million credit line, lowers existing facility by same

By Wendy Van Sickle

Columbus, Ohio, July 17 – Werner Enterprises, Inc. entered into a new credit agreement with U.S. Bank NA and reduced capacity under its existing credit agreement with Wells Fargo National Bank, NA on July 13, according to an 8-K filed with the Securities and Exchange Commission.

The new agreement with U.S. Bank provides a $75 million unsecured line of credit, expiring July 13, 2020.

It bears interest at Libor plus 55 basis points. It has a letter of credit fee of 55 bps per annum and an annual unused commitment fee of 7.5 bps.

Proceeds of that line of credit may be used for general corporate purposes, and no borrowings were drawn at closing.

The amendment to the Wells Fargo agreement reduces capacity of the unsecured line of credit to $100 million from $175 million and adds a $50 million maximum for the total letters of credit issued.

The agreement’s term is extended to July 12, 2020 from May 31, 2016.

Interest remains at Libor plus 60 bps. It has a letter of credit fee of 55 bps per annum and an annual unused commitment fee of 8.5 bps.

At closing, Werner had $75 million outstanding under agreement and $32.7 million in letters of credit.

Werner, based in Omaha, is a transportation provider of freight management and supply chain services.

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