Swift Transportation Co., the largest truckload carrier in North America, is seeking $874 million in term loans to refinance existing debt, according to a person with knowledge of the transaction.
The financing will include a $674 million term loan B-2 due in December 2017 and a $200 million term loan B-1 maturing in December 2016, said the person, who declined to be identified because the terms are private.
Bank of America Corp., Morgan Stanley and Wells Fargo & Co. are arranging the financing for the Phoenix-based company, the person said. Swift Transportation will host a lender call tomorrow at 11 a.m. in New York to discuss the deal.
Swift is also seeking a $400 million revolving line of credit that will be due in September 2016, the person said.
The company’s existing $874 million term loan pays interest at 4.5 percentage points more than the London interbank offered rate with a 1.5 percent minimum on the benchmark, according to data compiled by Bloomberg. The debt was sold to investors at 99 cents on the dollar, the data shows.
David Berry, a spokesman for Swift, didn’t immediately respond to an e-mail seeking comment.
A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, bank loan mutual funds and hedge funds. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.