Celadon credit facility capped at $122.7 million as options reviewed

By Wendy Van Sickle

Columbus, Ohio, May 29 – Celadon Group, Inc. amended its credit agreement to provide the company with adequate liquidity through June 28 to allow an evaluation of repayment transaction proposals, according to a news release.

Key terms include a maximum outstanding amount of $122.7 million, including a letter-of-credit sublimit of $28.9 million and maximum borrowing of $93.8 million.

The maturity date remains June 28, 2019, and a mandatory weekly cash budget was set through that date. The budget and borrowing limit are designed to permit Celadon to operate in the ordinary course of business.

Celadon said it is reviewing a range of financial and strategic alternatives to maximize repayment of the credit facility obligations on a near-term basis.

“The company’s current primary focus areas are executing its operational improvement plan and replacing its existing credit facility with a long-term capital structure,” the release states. “The operational improvement plan is centered on refreshing the tractor fleet, disposing of real estate not used in trucking operations, and enhancing the operating discipline of its asset-based U.S. and cross-border truckload services.

“Management believes a long-term capital structure and the continued execution of its operational improvement plan will allow the company to return to profitability over time.”

Celadon provides long-haul, full-truckload freight service and is based in Indianapolis.

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