Werner inks two new revolving credit agreements totaling $250 million

By Toni Weeks

San Diego, June 4 - Werner Enterprises, Inc. entered into two new revolving credit facilities on Friday, according to an 8-K filed with the Securities and Exchange Commission.

The first, a $75 million unsecured revolving credit facility due May 31, 2017 with BMO Harris Bank NA as lender, replaces the company's prior $50 million credit facility, which expired last Thursday. The company had no obligations or outstanding borrowings under the prior facility, which was with Branch Banking & Trust Co., and was in compliance with all covenants, according to the 8-K.

The BMO Harris revolver carries a coupon of Libor plus 70 basis points. There is also a letter of credit fee of 70 bps per year based upon the amount of each letter of credit outstanding as well as an unused commitment fee of 10 bps per year of the average daily unused amount.

Letters of credit limited to $25 million.

Werner also entered into a second facility, a $175 million unsecured revolving credit facility due May 31, 2016 with Wells Fargo Bank, NA as lender. The Wells Fargo revolver replaced Werner's $75 million credit facility, also with Wells Fargo, dated May 16, 2003.

As of June 1, the company was in compliance with all financial covenants under both the 2003 and 2012 Wells Fargo facilities and had $40 million in outstanding borrowings, with availability of borrowings further reduced by $3.79 million in letters of credit.

The Wells Fargo revolver bears interest at Libor plus 60 bps. There is a letter credit fee of 60 bps and an unused commitment fee of 8.5 bps per year of the average daily unused amount.

Availability of the funds under both credit facilities is based upon covenants requiring the company to adhere to a maximum ratio of total debt to total capitalization and a maximum ratio of total funded debt to EBITDA.

Werner, based in Omaha, is a transportation provider of freight management and supply chain solutions.

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