Ahead Of The Bell: Pacer's New Credit A Positive

NEW YORK (AP) — A change in terms of a credit line for Pacer International Inc. will ease potential near-term worries for the logistics and transportation company, an analyst said Monday.

KeyBanc analyst Todd C. Fowler said the amended credit line marks progress in the company's effort to preserve cash.

On Friday, Concord, Calif.-based Pacer International, which earlier this year suspended its dividend, said it agreed with lenders on an amended credit facility of up to $125 million. The facility could offer up to an additional $50 million.

Fowler, who also said the company could benefit from a higher diesel fuel surcharge and increased auto production, expects Pacer to lose 51 cents this year, a penny more than analysts polled by Thomson Reuters expect, on average, the company to lose.

The analyst reiterated his "Hold" rating on the shares, saying the risks and rewards of holding the stock are balanced.

Shares rose 48 cents, or 12 percent, to $4.53 in premarket trading.