Saia Inc. today, June 29, reported that it has amended its revolving credit and senior note facilities. The company says the amendment to its revolving credit facility:
In conjunction with the amendment to the revolving credit facility, Saia says it also amended its senior notes by modifying the financial covenants to match the relief provided in the revolving credit facility. Interest rates on the senior notes remain unchanged but now are subject to an increase if the noteholders are required by insurance regulations to increase reserves on the notes, according to the company; the noteholders also share equally in the collateral provided under the revolving credit facility, and the maturity of the notes remains unchanged.
“We are operating in an extremely difficult economic environment with weak tonnage demand and highly competitive pricing,” says James Darby, vice president of finance and chief financial officer for the Johns Creek, Ga.-based company. “We believe the amendments will add financial flexibility for Saia to prudently manage through this freight recession and take full advantage of the market when it recovers. Saia appreciates the cooperation of our lending group, and we thank them for their ongoing support.”
Saia says its total debt was $116.3 million at March 31 with no borrowings under the revolving credit agreement and an aggregate $116.3 million outstanding on the term notes. Saia says it had $53.7 million in letters of credit outstanding; net the company’s $12 million cash balance at quarter-end, net debt to total capital was 37.0 percent. This compares to total debt of $185.3 million at March 31, 2008.
The company says it paid an aggregate of $1.4 million, or 50 basis points, in fees to the lenders and noteholders in connection with the amendments and incurred other customary expenses in the transaction.
Saia Inc. is a less-than-truckload provider of regional, interregional and guaranteed services covering 34 states. With headquarters in Georgia and a network of 148 terminals, Saia employs 7,400 people.