Werner Enterprises enters $400 million credit agreement in two parts

By Wendy Van Sickle

Columbus, Ohio, March 31 – Werner Enterprises, Inc. entered on March 25 into a new $400 million credit agreement with Wells Fargo Bank, NA as lender, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides the company with a $300 million unsecured revolving line of credit and a $100 million term loan, each of which expires on May 14, 2024.

Proceeds may be used for general corporate purposes.

The credit agreement replaces the company’s existing $300 million credit agreement with Well Fargo as lender.

Amounts drawn on the line of credit and the outstanding principal balance of the term loan will bear interest at SOFR plus 10 basis points plus a margin ranging form 67.5 bps to 92.5 bps, based on the company’s ratio of total funded debt to EBITDA.

The company must pay an annualized letter-of-credit fee based on the face amount of each letter of credit outstanding at rates ranging from 55 bps to 80 bps and a commitment fee on average daily unused amount of the line of credit ranging from 11 bps to 15 bps.

The company is required to comply with a maximum ratio of total funded debt to EBITDA and a minimum ratio of EBITDA to interest expense.

At closing the company carried over $205 million outstanding under the line of credit, and $53.9 million of letters of credit have been issued under the line of credit. The full term loan amount was borrowed and used to reduce the line of credit balance.

Werner Enterprises is a transportation and logistics company based in Omaha.

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