INDIANAPOLIS, Dec. 26, 2017 /PRNewswire/ -- Celadon Group, Inc.
("Celadon" or the "Company") (NYSE: CGI) today announced an
amendment to its primary credit facility.
Credit Facility Amendment
On December 22, 2017 the Company
completed an amendment of its revolving credit facility led by Bank
of America, N.A. The primary amendments included the following:
- Financial covenants re-set through March
31, 2018.
- Increasing the maximum borrowing amount from approximately
$192 million to $205 million.
- Increasing the maximum outstanding amount (which includes
borrowings and letters of credit) from $226.3 million to $230
million.
- Increasing the interest rate for all borrowings to the greater
of 8.0% or the applicable prime rate plus 3.75%.
- Amending the calculation of the asset coverage ratio to permit
the inclusion of up to $78.2 million
of U.S. real property, and increasing the asset coverage ratio from
0.7:1.0 to 1.05:1.0 for periods ending prior to March 31, 2018 (the asset coverage ratio
calculation still excludes certain assets not consisting of U.S.
real property, U.S. rolling stock, and U.S. accounts
receivable).
Paul Svindland, Chief Executive
Officer, commented: "This amendment represents another important
step towards refinancing our existing credit facility. We
expect the financial covenant relief and additional borrowing
capacity to provide an appropriate time period for the refinancing
process. Management continues to work diligently towards
accomplishing a refinancing as early as possible."
The full text of the amendment and required disclosures will be
reported on a Form 8-K to be filed with the United
States Securities and Exchange Commission ("SEC").
About Celadon
Celadon Group, Inc. (www.celadongroup.com), through its
subsidiaries, provides long haul, regional, local, dedicated,
intermodal, temperature-protect, and expedited freight service
across the United States,
Canada, and Mexico. The Company also owns Celadon
Logistics Services, which provides freight brokerage services,
freight management, as well as supply chain management solutions,
including logistics, warehousing, and distribution.
This press release contains certain statements that may be
considered forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, and such
statements are subject to the safe harbor created by those sections
and the Private Securities Litigation Reform Act of 1995, as
amended. Such statements may be identified by their use of terms or
phrases, including "expects," "expected," "will," "would be,"
"intends," "believes," and similar terms and phrases.
Forward-looking statements are based upon the current beliefs and
expectations of our management and are inherently subject to risks
and uncertainties, some of which cannot be predicted or quantified,
which could cause future events and actual results to differ
materially from those set forth in, contemplated by, or underlying
the forward-looking statements. In this press release,
statements relating to the expectation that the amendment will
provide an appropriate time period for the refinancing, the
covenant relief, and the additional borrowing capacity, among
others, are forward-looking statements. Actual results
may differ from those set forth in the forward-looking
statements. Readers should review and consider factors that
could cause actual results to differ from expectations, such as
liquidity shortfalls, lower asset values, excess borrowing, and
delays in negotiating, documenting, and closing a refinancing
transaction, and various disclosures by the Company in its press
releases, stockholder reports, and filings with the SEC.
For more information:
Joe Weigel
Director of Communications
(317) 972-7006 Direct
jweigel@celadongroup.com
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SOURCE Celadon Group, Inc.