Heartland Express, Inc. Announces Executive Changes; Enters into a Five-Year, Unsecured $250 Million Revolving Credit Facility
November 11, 2013 at 11:24 pm
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The Board of Directors of Heartland Express, Inc. announced that it has acquired 100% of the stock of Gordon Trucking, Inc. and certain associated assets in transactions valued at approximately $300 million. Steve and Scott Gordon have joined Heartland's management team. Larry and Virginia Gordon will retire after 50 years of building GTI, and Larry Gordon has joined Heartland's Board of Directors.
The company has entered into a five-year, unsecured $250 million revolving credit facility supplied by Wells Fargo Bank, N.A. Borrowings under the facility will bear interest at a floating rate of LIBOR + 62.5 basis points annually (currently an annual rate of 0.865%). Unused amounts are subject to a commitment fee of 6.25 basis points annually. After giving effect to the closing and refinancing of existing GTI debt, Heartland expects to have available borrowing capacity of approximately $155 million to fund working capital, capital expenditures, and general corporate uses. The revolving credit facility contains customary terms and conditions. Heartland must maintain a consolidated leverage ratio (total funded debt divided by Adjusted EBITDA) of less than 2:00 to 1:00. In addition, Heartland must generate at least $1.00 of adjusted net income annually and maintain tangible net worth of at least $200 million. Heartland expects to be in compliance with the financial covenants for the foreseeable future.
Heartland Express, Inc. is a holding company. The Company, together with its subsidiaries, is a short, medium and long-haul truckload carrier and transportation services provider. It primarily provides a nationwide asset-based dry van truckload service for various shippers across the United States, along with cross-border freight and other transportation services offered through third party partnerships in Mexico. The Companyâs primary customers include retailers, manufacturers and parcel carriers. Its over-the-road tractors are equipped with mobile communication systems. It operates 31 terminal facilities throughout the contiguous United States and one in Mexico. The Companyâs subsidiaries include Heartland Express, Inc. of Iowa, Heartland Express Services, Inc., Heartland Express Maintenance Services, Inc., Midwest Holding Group, LLC, Millis Transfer, LLC, Smith Transport, Inc. and others.
HEARTLAND EXPRESS, INC. 
