Old Dominion closes $500 million five-year revolving credit facility

By Susanna Moon

Chicago, Nov. 23 - Old Dominion Freight Line, Inc. closed a $500 million five-year revolving credit agreement Monday with CoBank, ACB, Wells Fargo Securities, LLC and Bank of America Merrill Lynch as lead arrangers, according to an 8-K filed with the Securities and Exchange Commission.

Interest on the loans is Libor plus 85 basis points to 150 bps, based on the company's credit ratings.

The commitments under the agreement mature on Nov. 20, 2016, and the agreement replaces seven bilateral credit agreements with a total of $460 million of revolving loan commitments and varying expiration dates in 2012 or 2013, the filing noted.

CoBank, ACB is syndication agent; Wells Fargo Bank, NA is administrative agent and swingline lender; and Bank of America, NA is documentation agent.

The terms require the company to maintain a debt to capitalization ratio of no more than 0.85 times and a margins-for-interest of no less than 1.10 times interest charges.

Old Dominion is a less-than-truckload motor carrier based in Thomasville, N.C.

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