Swift Transportation cuts pricing on revolver, prepays some term loans

By Susanna Moon

Chicago, April 19 - Swift Transportation Co. reduced interest on its revolving credit facility to Libor plus 300 basis points to 325 bps, based on leverage, and extended the term to Sept. 21, 2016.

The rate was lowered from Libor plus 450 bps, and the maturity was pushed back from Dec. 21, 2015.

The company amended its credit agreement Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The unused fee was cut to 25 bps to 50 bps, from 50 bps to 75 bps.

On Tuesday, the company entered into an amended credit agreement for a $10 million tranche B-1 term loan. Proceeds were used to prepay a portion of the first-lien term loan B-2 tranche.

The incremental term loan terms are the same as those for the first-lien term loan tranche B-1, the filing noted.

Also on Tuesday, the company prepaid $26.3 million of the first-lien term loan B-1 tranche and $23.9 million of the first-lien term loan B-2 tranche.

The prepayments were funded through advances from the company's accounts receivable securitization facility and from proceeds of the incremental term loan. The prepayments have eliminated the scheduled principal payments on the first-lien term loan B-1 tranche through June 2013 and the first lien term-loan B-2 tranche through September 2015.

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

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