US Xpress Said to Amend Plans to Refinance $230 Million of Debt

US Express Enterprises Inc., a trucking company, won’t refinance $230 million of it’s debt and is seeking to extend a portion of its borrowings, according to a person with knowledge of the transaction.

The company is seeking to push out the maturity of its term loan by four years and will pay interest on the debt at 7.5 percentage points more than the London interbank offered rate, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.5 percent floor.

US Xpress is proposing to sell the loan at 98 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.

Lenders who choose not to extend their commitments will remain in the company’s term loan due in 2014, which pays interest at 5.5 percentage points more than Libor with a 2 percent floor, according to the person.

SunTrust Banks Inc. is arranging the financing for the Chattanooga, Tennessee-based company, which is also seeking a $40 million, three-year revolving line of credit that will pay 6 percentage points more than Libor with a 1.5 minimum on the lending benchmark.

Ray Harlin, chief financial officer of US Xpress, didn’t immediately respond to an e-mail seeking comment.

The company was originally seeking to refinance with a $190 million four-year term loan that was going to pay interest at 6 percentage points more than Libor, with a 1.5 percent floor and was to be sold to investors at 97.5 cents to 98 cents on the dollar, according to data compiled by Bloomberg.

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