SAIA, INC. (NASDAQ:SAIA) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01Entry into a Material Definitive Agreement.
On February 5, 2019, Saia, Inc. (the “Company”) entered into a Sixth Amended and Restated Credit Agreement with BOKF, NA dba Bank of Oklahoma, as Administrative Agent and Collateral Agent, and the banks parties thereto (the “Restated Credit Agreement”).The Restated Credit Agreement:
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increases the size of the revolving credit facility from $250 million to $300 million and continues to make available an accordion feature that allows for an additional $100 million in commitments under the facility; |
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extends the maturity of the Restated Credit Agreement from March 2020 to February 2024; |
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reduces the performance-based interest rate pricing grid such that the Company expects to achieve more favorable borrowing costs under the amended facility than under the previous credit agreement; |
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eliminates the fixed charge coverage covenant and replaces it with a debt service coverage covenant; and |
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allows the Company to pay dividends to its stockholders if the Company is in compliance with certain covenants. |
Borrowings under the Restated Credit Agreement bear interest at a rate per annum equal to, at the option of the Company, (i) LIBOR plus the applicable margin of 1.00%-2.00% subject to a 0.00% LIBOR floor, or (ii) the base rate plus the applicable margin, which is 1.50% lower than for LIBOR loans. The obligations of the Company under the Restated Credit Agreement are secured by a first priority perfected lien on certain of the assets and property of the Company and its subsidiaries.
The Restated Credit Agreement contains a minimum debt service coverage ratio set at 1.25 to 1.00 and a maximum leverage ratio set at 3.25 to 1.00.The Restated Credit Agreement also contains certain customary representations and warranties, affirmative and negative covenants and provisions relating to events of default. Under the Restated Credit Agreement, if an event of default occurs, the lenders will be entitled to take various actions, including the acceleration of amounts due.The Company is obligated to pay customary fees to the agents and lenders under the credit agreement with respect to arranging and maintaining the credit facility.
The foregoing description of the Restated Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Restated Credit Agreement, a copy of which is filed herewith as Exhibit 10.1 and is incorporated herein by reference.A copy of the press release announcing the Company’s entry into the Restated Credit Agreement is attached hereto as Exhibit 99.1.
Item 2.03Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
See the disclosure contained in Item 1.01 above, which is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
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99.1 |
Press release of dated February 6, 2019. |
SAIA INC Exhibit
EX-10.1 2 saia-ex101_7.htm EX-10.1 saia-ex101_7.htm Exhibit 10.1 $300,…
To view the full exhibit click here
About SAIA, INC. (NASDAQ:SAIA)
Saia, Inc. is a transportation company. The Company provides a range of less-than-truckload (LTL), non-asset truckload, expedited and logistics services across the United States. The Company conducts its operations through its subsidiaries, such as Saia Motor Freight Line, LLC (Saia LTL Freight), Saia TL Plus, LLC (Saia TL Plus), Saia Sales, LLC (Saia Sales), Saia Logistics Services, LLC (Saia Logistics Services), MetroGo, Inc. (MetroGo) and LinkEx, Inc. (LinkEx). Saia LTL Freight is a multi-regional LTL carrier that serves over 30 states in the South, Southwest, Midwest, Pacific Northwest and West. Saia LTL Freight specializes in offering its customers a range of regional and interregional LTL services, including time-definite and expedited options. Saia LTL Freight primarily provides its customers with solutions for shipments between 100 and 10,000 pounds, as well as selected guaranteed, expedited and truckload services.