Celadon amends credit agreement, evaluates extension, other options

By Wendy Van Sickle

Columbus, Ohio, April 1 – Celadon Group, Inc. and its existing lenders agreed entered into a 15th amendment to make several changes to its existing credit agreement, according to a press release.

The amendment provides consent framework for the company’s disposition of its A&S Kinard and Buckler Transport subsidiaries as well as an additional contemplated disposition that is expected to occur by April 15.

Also, the previous pay down requirement was reduced and the deadline for completion of the pay down was extended to April 15 from March 31 to align the credit agreement terms with the expected net proceeds and timing of the A&S/Buckler disposition and the other contemplated disposition.

Additionally, the maximum borrowing amount and maximum outstanding amount available under the credit facility were reset to align with the revised pay down requirement and timing, and financial covenants were revised through May 24.

The existing credit facility matures on June 29 and contains financial and other terms that require a material pay down by April 15 and additional amendment or extension by May 24.

“The company intends to use the period through May 24 to continue evaluating, together with its revolving credit lenders, the potential for a long-term extension of the credit facility as well as all available alternatives,” the release states.

The Indianapolis-based company provides long-haul, full-truckload freight service across the United States, Canada and Mexico.

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