Celadon Group Inc (NYSE:CGI) reported an amendment to its primary revolving credit facility. On December 22, 2017, the firm closed an amendment of its primary credit facility directed by Bank of America, N.A.
Celadon reported that the primary amendments included financial covenants re-established through March 31, 2018; growing the maximum borrowing sum to $205 million from around $192 million; swelling the maximum outstanding sum, which includes letters of credit and borrowings, to $230 million from $226.3 million; and hiking the interest percentage for all borrowings to the greater of 8% or the pertinent prime rate plus 3.75%.
It also amended the computation of the asset coverage ratio to allow the addition of up to $78.2 million of United States real property, and growing the asset coverage ratio to 1.05:1.0 from 0.7:1.0 for periods closing prior to March 31, 2018. The asset coverage ratio computation still discounts certain assets not comprising of U.S. rolling stock, U.S. accounts receivable and U.S. real property.
Paul Svindland, the CEO of Celadon, reported that this amendment exhibits another vital step towards refinancing their current credit facility. They anticipate the financial covenant relief and increased borrowing capacity to offer an opportune time period for the refinancing procedure. Management continues to work assiduously towards achieving a refinancing as early as possible. The entire text of the amendment and mandated disclosures will be issued on a Form 8-K to be submitted with the United States “SEC”.
Celadon Group through its subsidiaries, offers long haul, dedicated, intermodal, regional, local, and expedited and temperature-protect freight service across the U.S., Mexico and Canada. The firm also has separate unit as Celadon Logistics Services, which offers freight management, freight brokerage services, and supply chain management services, including warehousing, distribution and logistics.
In the last trading session, the stock price of Celadon declined 0.79% to close the day at $6.30.