Covenant Transportation reduces pricing on facility, extends to 2018

By Susanna Moon

Chicago, Aug. 7 – Covenant Transportation Group, Inc. improved pricing on its credit agreement with Bank of America, NA as agent and JPMorgan Chase Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into an amended credit agreement Thursday, pushing out the maturity to Sept. 23, 2018 from Sept. 23, 2017.

Interest on the loans was improved to Libor plus 150 basis points to 200 bps, based on average pricing availability. Prior to the amendment, the margin over Libor ranged from 150 bps to 225 bps.

The unused line fee was reduced to 25 bps, retroactive to July 1. Prior to the change, the fee was either 37.5 bps or 50 bps depending on availability.

In exchange, the company agreed to pay fees of $118,750.

Covenant Transportation is a Chattanooga, Tenn.-based provider of truckload transportation services.

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