Werner Enterprises gets $500 million of new five-year revolvers

By Angela McDaniels

Tacoma, Wash., May 14 – Werner Enterprises, Inc. entered into a new $300 million five-year revolving credit facility with Wells Fargo Bank, NA and a new $200 million five-year revolver with BMO Harris Bank NA, according to a company news release.

The new revolvers replace the previous credit facilities with both lenders.

The interest rate on the Wells Fargo revolver is daily one-month Libor plus a margin that ranges from 67.5 basis points to 92.5 bps. Unused amounts are subject to a commitment fee of 11 bps to 15 bps annually.

The $75 million currently outstanding under a term commitment with Wells Fargo, having a maturity date of Sept. 15, 2019, is deemed to be an advance against the $300 million under the terms of the new credit facility.

The interest rate on the BMO Harris revolver is daily one-month Libor plus a margin that ranges from 70 bps to 150 bps. Unused amounts are subject to a commitment fee of 10 bps to 25 bps annually.

Pricing on both credit facilities depends on the company’s ratio of total funded debt to EBITDA, and both contain financial covenants that require Werner to not exceed a maximum ratio of total funded debt to EBITDA and to exceed a minimum ratio of EBITDA to interest expense.

The terms of the company’s $75 million revolving line of credit due July 13, 2020 with U.S. Bank, NA were not changed.

After considering anticipated borrowings to finance a special dividend, currently outstanding borrowings of $125 million and letters of credit currently issued, Werner expects to have available remaining borrowing capacity of more than $150 million to fund capital expenditures, common stock repurchases, working capital and other general corporate purposes.

The special dividend is $3.75 per common share and will be paid on June 7. The special dividend will total about $262 million and is in addition to the regularly quarterly cash dividend of $0.09 per common share payable on July 16.

The company’s board of directors approved a new stock repurchase program under which Werner is authorized to repurchase up to 5 million shares of common stock.

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

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