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Swift Transportation prepays portion of B-1, B-2 first-lien term loans
By Toni Weeks
San Luis Obispo, Calif., March 1 - Swift Transportation Co. made $44.5 million in voluntary prepayments on its first-lien term loans and also repriced the loans, according to an 8-K filing with the Securities and Exchange Commission.
The company funded a $5.5 million prepayment on its B-1 tranche and a $39 million prepayment on its B-2 tranche primarily with operating cash flows and advances from the company's accounts receivable securitization facility.
Following these prepayments and additional prepayments on the B-2 tranche of $10 million on Jan. 28 and $20 million on Feb. 11, the outstanding principal amount under the B-1 and B-2 tranches is $152 million and $508 million, respectively.
Swift also received lender approval to reprice both tranches. According to the filing, the company plans to increase the total outstanding balance on the B-1 tranche by $98 million while reducing the B-2 balance by the same amount.
In addition, the amendment, which is expected to close March 7, will reduce interest on the B-1 tranche to Libor plus 275 basis points with no Libor floor from Libor plus 375 bps with no Libor floor and on the B-2 tranche to Libor plus 300 bps with a 1% Libor floor from Libor plus 375 bps with a 1.25% Libor floor.
The covenants, maturity dates and amortization schedules prior to maturity are unaffected by the amendment.
The next scheduled principal payment on the B-1 loan is due in September 2014, and the next scheduled payment on the B-2 tranche is at maturity in December 2017, the filing noted.
Swift is a Phoenix-based transportation services company and truckload carrier.
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