Universal Truckload closes $220 million five-year facility for merger

By Susanna Moon

Chicago, Aug. 31 - Universal Truckload Services, Inc. obtained a $220 million five-year credit facility on Thursday, consisting of a $110 million revolving credit facility a $60 million equipment credit facility and a $50 million term loan.

Interest on the revolver loans will initially be Libor plus 160 basis points, based on leverage, while interest on the equipment facility will initially be Libor plus 185 bps. And interest on the term loan will initially be Libor plus 275 bps.

The spread will be Libor plus 135 bps to 210 bps for the revolver, Libor plus 160 bps to 260 bps for the equipment facility and Libor plus 250 bps to 325 bps for the term loan.

The revolver may be increased by up to $20 million and will mature on Aug. 28, 2017. The term loan also is due on Aug. 28, 2017.

Borrowings under the equipment credit facility may be made until Aug. 28, 2015, and the debt drawn in any year must be repaid in 28 quarterly installments beginning on April 1 of the year.

The company may draw up to $5 million for letters of credit.

On July 25, Universal Truckload and LINC Logistics Co. entered into a merger agreement.

Universal may voluntarily repay loans at any time, subject to breakage costs for Libor-based borrowings. In addition, Universal may elect to permanently terminate or reduce all or a portion of the revolving credit facility.

Proceeds will be used to pay off LINC's debt and for general corporate purposes.

Universal Truckload is a provider of transportation services to shippers based in Warren, Mich.

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