Swift Transportation buyout financing to include $2.975 billion facility

By Sara Rosenberg

New York, Jan. 24 - Swift Transportation Co. Inc. detailed its buyout financing, including plans for a new $2.975 billion senior secured credit facility, according to an SC 13D/A filed with the Securities and Exchange Commission Wednesday.

Morgan Stanley is the lead bank on the deal.

The credit facility consists of a $450 million five-year revolver expected at Libor plus 275 basis points with a 50 bps commitment fee, a $1.69 billion seven-year first-lien term loan B expected at Libor plus 275 bps and an $835 million eight-year second-lien term loan expected at Libor plus 625 bps, the filing said.

The second-lien term loan will carry call premiums of 102 in year one and 101 in year two.

Proceeds will be used to help fund the buyout of Swift by Jerry Moyes, the company's largest shareholder, a current director and former chairman of the board and chief executive officer.

Under the acquisition agreement, Moyes and certain of his family members will acquire Swift in an all-cash transaction valued at $2.74 billion, including the assumption of about $332 million of net debt.

The transaction is expected to be completed during the second quarter, subject to review by regulatory agencies under the Hart-Scott-Rodino Antitrust Improvements Act, approval by Swift stockholders, and other customary closing conditions.

Swift is a Phoenix, Ariz., truckload carrier.

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