Knight Transportation ups facility to $300 million, increases pricing

By Marisa Wong

Madison, Wis., Oct. 23 - Knight Transportation, Inc. amended and restated its credit agreement dated Sept. 15, 2005 with Wells Fargo Bank, NA to extend the maturity date of the credit facility to Oct. 21, 2016 from July 31, 2016 and increase the maximum commitment to $300 million from $150 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment, completed on Oct. 21, also increases the interest rate to Libor plus 75 basis points from Libor plus 62.5 bps and increases the unused commitment fee from to 10 bps from 6.25 bps.

In addition, the financial covenant related to tangible net worth was lifted to $400 million from $325 million and the limit on the company's ability to make loans or advances was increased to $50 million from $30 million.

The company will continue to use proceeds for funding its working capital, repurchasing capital stock, as well as general corporate purposes and permitted acquisitions.

Knight is a trucking company based in Phoenix.

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