Arnold Transportation gets commitment for new senior credit facility

By Sara Rosenberg

New York, Oct. 22 - Arnold Transportation Services Inc. received commitment letters for a new senior credit facility to help fund its buyout by U.S. Xpress Enterprises Inc. and current management from Jefferies Capital Partners, an informed source told Prospect News Friday.

No further details on the financing are being released at this time because the company is bound by confidentiality agreements.

Under the acquisition agreement, U.S. Xpress will own 49% of the company and management will own 51%. U.S. Xpress will contribute $6.4 million in equity to help finance the transaction and Arnold's management will rollover about half of its current stock.

U.S. Xpress will not guarantee or be obligated on any of the borrowings or other obligations of Arnold.

The transaction is expected to close by the end of November and is subject to customary closing conditions, including completion of the new credit facility.

"We elected to participate with the management group as a minority investor initially for several reasons," U.S. Xpress co-chairman Max L. Fuller said in a news release. "First, we wanted it to be clear to everyone at Arnold that Mike and his management team are in charge and responsible for growing and improving the operation.

"We also did not wish to add substantial leverage to our balance sheet. Our investment is only $6.4 million, and we do not have any additional financial obligations related to this investment."

Arnold is a Jacksonville, Fla.-based dry van truckload carrier. U.S. Xpress is a Chattanooga, Tenn.-based truckload carrier.

© 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.