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BofA Agents Refi of Celadon Group Credit Facilities

August 02, 2019, 08:55 AM
Filed Under: Trucking
Related: Bank of America

Celadon Group, Inc. (CGIP) announced that it has refinanced its former revolving credit facility and obtained $165 million in new financing.

According to a regulatory filing, Bank of America served as Administrative Agent to the new financing which also included Wells Fargo Bank, N.A., and Citizens Bank, N.A., both as lenders. The new financing includes a $60.0 million Revolving Credit Facility, and a $105.0 million term loan.

Chief Executive Officer, Paul Svindland, commented: "This financing provides a solid platform for the next stage of our business turnaround.  A strong capital base is critical to providing dependable service for customers, a modern fleet for our drivers, and a stable home for all Celadon associates. We are grateful to our new financing partners for investing the time to understand our plan and the capital to support it."

Mr. Svindland continued, "As a company, we are highly energized by the opportunities ahead.  Over the past two years, we have exited several business units and become a focused North American truckload transportation company.  Despite numerous headwinds, including an older tractor fleet, we have achieved meaningful improvements in revenue per seated tractor, customer service, and safety.

"The linchpin to our next round of improvement involves replacing approximately 2,000 four and five-year old tractors with new units.  Our fleet refresh is underway, with approximately 100 new trucks delivered since May, another 100 scheduled for August, and approximately 1,800 more expected to arrive over the next several quarters.  These new trucks will dramatically lower our costs, enhance productivity, and improve the lives and safety of our professional drivers.  Beyond the fleet refresh, we must return to our historical roots as a high-service, low cost provider to our customers. We will have all the tools, and it is now up to our team to execute our plan."

Mr. Svindland concluded, "Outside of core operations, we expect to complete our financial statement audit during our second or third quarter of fiscal 2020.  Promptly thereafter, we intend to resume filing financial reports with the SEC and to seek a listing on a national stock exchange."

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