Swift Transportation closes on $1.28 billion restated credit agreement

By Tali Rackner

Norfolk, Va., July 30 – Swift Transportation Co. entered into a fourth amended and restated credit agreement on Monday, replacing the existing agreement, according to an 8-K filing with the Securities and Exchange Commission.

The 2015 agreement includes a $600 million revolving credit facility and a $680 million first-lien term loan A, each maturing July 2020.

Initial interest on the loans is Libor plus 175 basis points. The spread is subject to a leverage-based grid.

Financial covenants are unchanged from the previous agreement.

Principal payments for the term loan A are due quarterly in the amount of $3,625,000 on Sept. 30, $6,625,000 from Dec. 31, 2015 through Dec. 31, 2016 and then increasing to $12.25 million per quarter for 2017 through maturity, when the balance is due.

Proceeds from the term loan A, $200 million drawn from the revolver and $3 million of cash on hand were used to pay off the then-outstanding balances of the first-lien term loan A and B tranches under the 2014 agreement.

Swift is a Phoenix-based transportation services company.

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