Swift Transportation $2.975 billion credit facility expected as April/May business

By Sara Rosenberg

New York, Feb. 22 - Swift Transportation Co. Inc.'s proposed $2.975 billion senior secured credit facility is expected to launch with a bank meeting sometime in the April/May timeframe, according to a market source.

Morgan Stanley, Wachovia and JPMorgan are joint lead arrangers, joint bookrunners and co-syndication agents on the deal, with Morgan Stanley the left lead.

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, according to filings with the Securities and Exchange Commission.

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 truckload carrier.

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