Van Buren-based USA Truck recently secured a $170 million credit line backed by several banks that will help the trucking company refinance debt at a lower interest rate and meet capital needs.
The deal provides USA Truck with almost $100 million of liquidity at closing abd “substantially” increases its access to capital, according to a statement the company issued Thursday (Feb. 5).
“The new credit facility is a direct reflection of the significant progress USA Truck has made in improving our business and operational effectiveness,” USA Truck President and CEO John Simone said in the statement.
With a better than expected third quarter net income of $2.717 million, USA Truck is on track in 2014 to end five consecutive years of losses. The third quarter net income of $2.717 million was an improvement over the $602,000 loss in the same quarter of 2013. Total revenue in the quarter was $153.618 million, better than the $141.822 million in the third quarter of 2013 and just above the consensus estimate of $153.4 million.
The transaction will result in a one-time, non-cash write-off of around $800,000 in the first quarter of 2015 related to unamortized debt issuance costs associated with the company’s previous credit arrangement. The agent for the deal was Bank of America Merrill Lynch. Other banks in the deal include SunTrust Bank, PNC Bank and BMO Harris Bank.
USA Truck shares (NASDAQ: USAK) closed Thursday at $28.55, up 42 cents. During the past 52 weeks the share price has ranged from a $30.51 high to a $13.29 low.