Universal Logistics Holdings, a Warren-based asset-light provider of customized transportation and logistics solutions, Wednesday announced it has closed on a new $350-million syndicated credit facility.
It consists of a $150-million term loan and $200-million revolving loan. Universal expects the credit facility will allow it to continue its acquisition strategy while streamlining its debt structure and reducing borrowing costs.
Certain proceeds advanced at closing under the new credit facility were used to repay certain existing indebtedness and to pay fees and expenses associated with the new financing.
“Closing this new credit facility is a significant milestone in Universal’s continued transformation,” says Jude Beres, CFO at Universal. “It gives us the flexibility and dry powder to make strategic acquisitions, expand our North American footprint, and clears a path for Universal’s continued success.”
Borrowings under the $200-million revolving loan may be made until the Nov. 26, 2023 maturity date. Proceeds from the $150-million term loan were advanced on Nov. 27 of this year and mature on Nov. 26, 2023.
The term loan will be repaid in consecutive quarterly installments, as defined in the credit agreement, beginning March 31, 2019, with the remaining balance due at maturity. At closing, the total outstanding balance under the new credit facility was about $186.6 million.
KeyBank National Association and The Huntington National Bank were joint lead arrangers and joint book runners. KeyBank is also the administrative agent and issuing lender.
Dykema in Detroit served as Universal’s legal advisers on the financing.