Knight-Swift Transportation Holdings raised its borrowing potential ahead of its deal to acquire U.S. Xpress Enterprises, according to a June 22 securities filing.
To help with the acquisition, which took effect July 1, Knight-Swift obtained an unsecured credit facility for up to $250 million before the closing.
The carrier secured the term loan through multiple banks to pay fees, commissions and expenses connected with the over $800 million acquisition.
The credit line followed a significantly larger one that Knight-Swift previously reached: On Sept. 3, 2021, the carrier obtained a $2.3 billion unsecured credit facility to replace a 2017 debt agreement and 2021 term loan.
Following the recent change in available financing and its U.S. Xpress acquisition, Knight-Swift reiterated its stance to expand its less-than-truckload capabilities.
"While the truckload part of the organization focuses on achieving the goals we have laid out for U.S. Xpress, our LTL and M&A teams remain focused on our strategic priority of continuing to build out a nationwide LTL network," CEO and President Dave Jackson said in a statement last week.
The new term loan will mature in a little over three years in September 2026. “There are no scheduled principal payments due until maturity,” the filing also said.
