C.H. Robinson details amendments to $900 million revolving facility

By Jennifer Chiou

New York, Jan. 6 – C.H. Robinson Worldwide Inc. amended its existing credit agreement with a group of lenders led by U.S. Bank NA, bringing the size of its revolving credit facility to $900 million from $500 million, according to an 8-K filing with the Securities and Exchange Commission.

As reported, the company said it drew on the facility to fund its acquisition of Freightquote.com, Inc. for $365 million in cash.

The filing stated that the increase does not affect the letter-of-credit subfacility or the swingline subfacility. Both remain at $50 million.

The amendment, entered into on Dec. 31, also extends the maturity date to Dec. 31, 2019 from Oct. 29, 2017.

In addition, the amendment permits the company to engage in receivables securitizations and similar financings, subject to a cap on the effective aggregate principal amount of $250 million.

The changes also involve modifying the leverage covenant so that C.H. Robinson will be required to maintain a ratio of consolidated funded debt to consolidated EBITDA – rather than consolidated funded debt to consolidated total capitalization – as of the end of each fiscal quarter of no more than 3.00 to 1.00. This is subject to the company’s right, on a one-time basis in connection with any permitted acquisition, to increase the maximum ratio to 3.50 to 1.00 for the next four fiscal quarters.

Interest on the amended facility is initially Libor plus 112.5 basis points and can vary from Libor plus 87.5 bps to Libor plus 150 basis points, depending on leverage. The commitment fee is initially 15 bps and can vary from 10 bps to 20 bps, again depending on leverage.

U.S. Bank NA, Wells Fargo Securities, LLC and BMO Harris Bank, NA are joint lead arrangers and joint bookrunners, with BMO joining as part of the amendment. U.S. Bank NA is administrative agent. Wells Fargo Bank, NA and BMO Harris Bank, NA are co-syndication agents. Again BMO joins with the amendment. Bank of America, NA, Bank of Tokyo-Mitsubishi, UFJ, Morgan Stanley Bank, NA and JPMorgan Chase Bank, NA are co-documentation agents. Mizuho Corporate Bank Ltd. is no longer a documentation agent.

C.H. Robinson is a non-asset-based third-party logistics company based in Eden Prairie, Minn. Freightquote is a freight broker for less-than-truckload, truckload and intermodal services.

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