The new credit facility, with up to $40 million to be used for acquisition purposes, involves a syndicate of participating banks led by Bank One, N.A., AmSouth Bank N.A. and Bank of America N.A. are co-agents for the facility. The new credit agreement was arranged by Banc One Capital Markets, Inc.
The new agreement replaces a $33 million revolver/term credit facility. With tiered interest rates, it is expected to reduce the company's interest expense on outstanding borrowings by approximately 50 basis points compared with the existing facility.
"This new arrangement significantly enhances our ability to grow and enables us to expand our acquisition capabilities," said Transit Group's President and Chief Executive Officer Philip A. Belyew. "It is our intent to target non-asset-based transportation companies in our future acquisition strategy. The new credit facility reduces our effective interest costs, is extremely flexible, and provides for future growth."