Pacer refinances debt
Pacer International said it has refinanced its debt with Bank of America and Wells Fargo, obtaining an asset-based $125 million revolving loan, expandable by $50 million, subject to its collateral and other conditions.
Daniel W. Avramovich, Pacer's chairman and chief executive officer, said the new loan reflects his company’s improved financial condition and will “give us the flexibility to further expand our operations and better serve our customers.”
The loan will reduce interest rates and fees, eliminate limitations on capital expenditures, and ease restrictive covenants that limit Pacer’s ability to make investments, acquisitions, and equity distributions. The loan matures on Dec. 30, 2015 and reduces the number of lenders from 11 to two.
Pacer is involved in intermodal transportation through Pacer Stacktrain, local trucking and door-to-door service combining rail and truck transportation. Its logistics segment provides truck brokerage, warehousing and distribution, international freight forwarding, and supply-chain management services.
