8-KFinancial EventsExhibits & Filings

OLD DOMINION FREIGHT LINE, INC. 8-K Report, Financial Obligation (Jun 20, 2006)

Filed June 20, 2006For Securities:ODFL

Summary

Old Dominion Freight Line, Inc. (ODFL) announced on June 20, 2006, the successful issuance of $75 million in privately-placed Series A Senior Notes, Tranche B, on June 15, 2006. This issuance, following an earlier $100 million Tranche A issuance on April 25, 2006, brings the total Series A Notes to $175 million. The proceeds from this new debt offering are earmarked for planned capital expenditures and general corporate purposes, signaling the company's intent to invest in its future growth and operations. The Series A Notes are unsecured, mature in April 2016, and carry a fixed interest rate of 5.85% per annum, payable semi-annually. The notes include provisions for mandatory annual principal prepayments starting in April 2010, alongside optional prepayment options. The agreement also imposes several financial covenants, including limitations on debt-to-capitalization ratios, priority debt, and fixed charge coverage, which are standard for such private placements and are designed to ensure the company's financial stability.

Key Highlights

  • 1Old Dominion Freight Line (ODFL) issued $75 million in Series A Senior Notes, Tranche B, on June 15, 2006.
  • 2Total Series A Notes outstanding now stand at $175 million, with Tranche A having been issued earlier on April 25, 2006.
  • 3The Notes mature on April 25, 2016, with a fixed interest rate of 5.85% per annum.
  • 4Proceeds from the issuance will be used for planned capital expenditures and general corporate purposes.
  • 5The Series A Notes are unsecured and rank pari passu with other senior unsecured indebtedness.
  • 6The debt agreement includes financial covenants such as maximum debt-to-capitalization ratio, limitation on priority debt, and minimum fixed charge coverage ratio.
  • 7Mandatory annual principal prepayments for Tranche B Notes begin on April 25, 2010.

Frequently Asked Questions

The company has raised a total of $175 million through the Series A Senior Notes, consisting of $100 million from Tranche A issued on April 25, 2006, and $75 million from Tranche B issued on June 15, 2006.

The Series A Notes carry a fixed interest rate of 5.85% per annum, payable semi-annually, and mature on April 25, 2016.

The proceeds from the Tranche B Notes issuance are intended for planned capital expenditures and general corporate purposes.

Yes, there are mandatory annual principal prepayments on the Tranche B Notes commencing April 25, 2010. The company also has the option to prepay all or part of the Series A Notes at any time under specific conditions. The agreement also contains financial covenants that the company must adhere to.