Patrick E. Quinn and Max L. Fuller recently provided an update regarding their previously announced intention, through an entity controlled by them, to proceed with a tender offer to acquire all of the outstanding shares of Class A common stock of U.S. Xpress Enterprises. Quinn and Fuller say they expect to cause their wholly owned affiliate, New Mountain Lake Acquisition Company, to commence the proposed tender offer to the Chattanooga, Tenn.-based company within one week.
Quinn and Fuller further announced that the proposed tender offer price is expected to be increased from $20 per share to $20.10 per share. The new offer price would represent a premium of 44.8 percent over the $13.88 per-share average reported closing price of the company’s Class A common stock for the 30 trading days ended on June 21, the last trading day before the date of the original tender offer proposal, and a 41.3 percent premium over the $14.23 per share reported closing price on June 21.
Quinn and Fuller also announced that SunTrust Bank and SunTrust Robinson Humphrey have delivered a restated commitment letter to fund the proposed tender offer and to provide post-closing financing. The restated financing commitment reflects certain changes in the leveraged finance market since the original June 22 announcement date and is subject to customary conditions. The restated financing commitment is expected to be filed shortly on an amendment to the Schedule 13D filed by Quinn and Fuller on June 22. The tender offer will be conditioned upon the receipt of funds as described in the commitment letter.
Quinn and Fuller founded U.S. Xpress in 1985 and serve as co-chairmen of the board. Fuller is the company’s chief executive officer, and Quinn is the company’s president.