Arcbest corporation enters into third amended and restated credit agreement

On september 27, 2019, arcbest corporation entered into a third amended and restated credit agreement among the company and certain of its subsidiaries that become party thereto from time to time, as borrowers, u.s. bank national association and the other financial institutions named therein, as lenders and letter of credit issuers, and u.s. bank national association, as administrative agent (“administrative agent”), which increased the commitments under its revolving credit facility from $200 million to $250 million. the revolving credit facility (the “credit facility”) has a five year term and an initial maximum credit amount of $250 million at any time outstanding, including a swing line facility providing for swing line loans up to an aggregate outstanding amount of $25 million, and a letter of credit sub-facility providing for the issuance of letters of credit up to an aggregate outstanding amount of $20 million. the credit facility will be used, among other purposes, for general corporate purposes and to fund working capital. the credit facility also provides the company with the right to request additional revolving commitments or incremental term loans thereunder up to an aggregate additional amount of $125 million, subject to the satisfaction of certain additional conditions provided therein. the credit facility is secured by: (i) a lien on substantially all of the assets (subject to certain excluded assets, including receivables and related property securing the company’s accounts receivable securitization facility) of the company and of the company’s material domestic subsidiaries (as defined in the credit agreement) and (ii) pledges of equity interests in certain subsidiaries of the company and its material domestic subsidiaries. the indebtedness under the credit agreement and certain other obligations owed to lenders or their affiliates are cross-guaranteed by the company and its material domestic subsidiaries. the credit facility matures on october 1, 2024 (the “termination date”) and borrowings under the credit agreement can either be, at the company’s election: (i) at the alternate base rate (as defined in the credit agreement) plus a spread ranging from 0.125% to 1.25% or (ii) at the eurodollar rate (as defined in the credit agreement) plus a spread ranging from 1.125% to 2.25%. the applicable spread is dependent upon the company’s adjusted leverage ratio (as defined in the credit agreement). interest accrued on each base rate advance (as defined in the credit agreement) is payable in arrears on the last business day (as defined in the credit agreement) of each calendar quarter and on the termination date. interest accrued on each eurodollar advance (as defined in the credit agreement) is payable on the last day of the applicable interest period, or every three months, whichever comes sooner, and on any prepayment date and the termination date.
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