Old Dominion Freight gets amended, restated $250 million revolver

By Sarah Lizee

Olympia, Wash., Nov. 21 – Old Dominion Freight Line, Inc. entered into an amended and restated $250 million five-year senior unsecured revolving credit facility on Thursday with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement amends and restates the terms of the company’s existing $300 million five-year senior unsecured revolver dated as of Dec. 15, 2015.

Of the $250 million in line-of-credit commitments provided by the lenders, $100 million may be used for letters of credit and 10% of the aggregate commitments under the facility as of any date of determination may be used for swingline loans.

In addition, the company has the right to request an increase in the aggregate commitments of up to $400 million, which may include one or more term loan commitments.

Interest is Libor plus 100 basis points to 137.5 bps, based on the company’s consolidated debt to consolidated total capitalization ratio. The commitment fee ranges from 10 bps to 17.5 bps on the same terms.

Initially, interest will be Libor plus 100 bps and the commitment fee will be 10 bps.

Financial covenants include a maximum consolidated debt to consolidated total capitalization ratio not to be more than 0.6x and a minimum fixed charge coverage ratio not to be less than 2x.

The company intends to use any proceeds for working capital, the issuance of letters of credit and general corporate purposes.

Wells Fargo Securities, LLC is the bookrunner and a lead arranger together with BofA Securities, Inc. Bank of America, NA is the syndication agent.

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

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