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Saia enters into $300 million revolver with $150 million accordion
By Mary-Katherine Stinson
Lexington, Ky., Feb. 6 – Saia, Inc. entered a new credit agreement with JPMorgan Chase Bank, NA as administrative agent providing a revolving credit facility for up to $300 million, according to an 8-K filing with the Securities and Exchange Commission.
The credit agreement contains an accordion feature that allows the company to increase the size of the facility by up to $150 million, subject to certain conditions, for a total borrowing capacity of up to $450 million.
It also provides for letters of credit.
Borrowings bear interest at SOFR plus 10 basis points plus an applicable margin between 100 bps and 175 bps based on the company’s consolidated net lease adjusted leverage ratio. There is a 0% SOFR floor.
There are fees based on the daily unused portion of the credit facility which will be between 12.5 bps and 25 bps also based on the company’s consolidated net lease adjusted leverage ratio.
The credit agreement matures Feb. 3, 2028.
The agreement requires that the company maintain a consolidated net lease adjusted leverage ratio of less than 3.5x with limited exceptions.
JPMorgan Chase Bank, NA, BOKF, NA, doing business as Bank of Oklahoma, Bank of America, NA, PNC Bank, NA and TD Bank NA are joint bookrunners and joint lead arrangers.
BOKF, NA is the syndication agent.
Bank of America, NA, PNC Bank, NA and TD Bank, NA are the co-documentation agents.
The company’s prior credit agreement, which was set to mature Feb. 5, 2024, was terminated on Feb. 3. There were no early termination penalties.
Proceeds will be used to refinance existing debt, to finance working capital needs and for general corporate purposes.
Saia is a Johns Creek, Ga.-based provider of less-than-truckload, non-asset truckload and logistics services.
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