Summary
Old Dominion Freight Line, Inc. (ODFL) announced on September 12, 2016, an amendment to its senior unsecured revolving credit facility, increasing the aggregate commitments by $50.0 million. This brings the total facility size to $300.0 million. The amendment leverages an accordion feature in the existing credit agreement, allowing for this expansion of borrowing capacity from current lenders.
Key Highlights
- 1ODFL increased its revolving credit facility by $50.0 million.
- 2The total credit facility now stands at $300.0 million.
- 3The increase was facilitated through an accordion feature within the existing credit agreement.
- 4The amendment was entered into on September 9, 2016.
- 5Wells Fargo Bank, National Association continues to serve as the administrative agent.
- 6The increased funds are intended for working capital, letters of credit, and general corporate purposes.
- 7This filing is related to a direct financial obligation and an amendment to a credit agreement.
Frequently Asked Questions
The company increased its credit facility to enhance its financial flexibility for working capital needs, to support the issuance of letters of credit, and for general corporate purposes.
Following the amendment, the aggregate commitments under the revolving credit facility have increased to $300.0 million.
This filing indicates an increase in borrowing capacity, not necessarily the immediate incurrence of new debt. The company can draw on this facility as needed for its operational and corporate requirements.
The increase of $50.0 million was provided by existing lenders under the Credit Agreement, with Wells Fargo Bank, National Association acting as the administrative agent.