Old Dominion Freight enters into five-year $250 million revolver

By Wendy Van Sickle

Columbus, Ohio, Dec. 21 – Old Dominion Freight Line, Inc. entered into a five-year $250 million amended and restated senior unsecured revolving credit agreement on Dec. 15, according to an 8-K filed with the Securities and Exchange Commission.

The facility has a $100 million sublimit for letters of a credit and a $30 million sublimit for swingline loans.

Old Dominion may request to increase commitments by up to an additional $100 million, which may include one or more term loans.

Borrowings will bear interest at Libor plus 100 basis points to 150 bps, depending on Old Dominion’s ratio of consolidated debt to consolidated total capitalization. There is a commitment fee of 12.5 bps to 20 bps, also depending on the debt-to-capitalization ratio.

Financial covenants include a maximum consolidated debt-to-capitalization ratio of 0.6 times and a minimum fixed-charge-coverage ratio of 2 times.

Wells Fargo Securities LLC acted bookrunner and was joined as a lead arranger by BB&T Capital Markets.

Wells Fargo Bank, NA is the administrative agent and Branch Banking and Trust Co. the syndication agent.

The credit agreement amends and restates the company’s existing five-year $200 million senior unsecured revolver dated Aug. 10, 2011.

Proceeds will be used for working capital, the issuance of letters of credit and general corporate purposes.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.