Swift Transportation $874 million loans firm at Libor plus 375 bps

By Sara Rosenberg

New York, Feb. 29 - Swift Transportation Co. finalized pricing on its $200 million term loan B-1 (BB) due Dec. 21, 2016 and $674 million term loan B-2 (BB) due Dec. 15, 2017 at Libor plus 375 basis points, the tight end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Also, a pricing step-down was added to the term loans under which the spread will drop to Libor plus 350 bps at less than 2.75 times gross leverage.

As before, both term loans are offered with an original issue discount of 993/4, the term loan B-1 has no Libor floor and the term loan B-2 has a 1.25% floor.

Amortization on the term loan B-1 is 10% in years one through three, 20% in year four and 25% in year five, with the balance due at maturity, and amortization on the B-2 is 1% per year.

The company's $1.274 billion credit facility also includes a $400 million revolver due Sept. 21, 2016.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are the lead arrangers on the deal.

Covenants include total leverage and interest coverage ratios and capital expenditures requirements.

Proceeds will be used to reprice and extend the maturities of the company's existing senior secured credit facility.

The existing deal was obtained in 2010 and consists of a $400 million five-year revolver and a $1.07 billion six-year term loan priced at Libor plus 450 basis points with a 1.5% Libor floor.

Swift is a Phoenix-based transportation services company and truckload carrier.

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