Covenant Transportation Group Announces Extension And Amendment Of Revolving Credit Facility
CHATTANOOGA, Tenn., Sept. 7 /PRNewswire-FirstCall/ -- Covenant Transportation Group, Inc. (Nasdaq: CVTI) announced today the extension and amendment of its revolving credit facility as of August 31, 2010.
Chairman, President, and Chief Executive Officer, David R. Parker, made the following comments: "We are very pleased to announce the extension and amendment of our $85 million revolving credit facility with Bank of America and J.P. Morgan. The maturity date was extended by three years to September 2014. In addition, the pricing grid was amended to eliminate the LIBOR floor on our interest rate grid, reduce the applicable margin for base rate and LIBOR borrowings across all levels of the grid and reduce our unused line fees, with an effective date of August 1 for the new rates. Based on our $44.6 million of availability under the facility at June 30, 2010, the effective interest rate on outstanding borrowings would have been reduced by 245 basis points, the letter of credit fees would have been reduced by 125 basis points and the unused line fees would have been reduced by 25 basis points under the amended facility. We appreciate the expression of confidence and support from our lenders. Our sole financial covenant did not change in the amendment, and based on our financial and operating expectations, we expect to comply with the applicable financial covenant for the foreseeable future."
Covenant Transportation Group, Inc. is the holding company for several transportation providers that offer premium transportation services for customers throughout the United States. The consolidated group includes operations from Covenant Transport and Covenant Transport Solutions of Chattanooga, Tennessee; Southern Refrigerated Transport of Texarkana, Arkansas; and Star Transportation of Nashville, Tennessee. The Company's Class A common stock is traded on the Nasdaq Global Select under the symbol, "CVTI".This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may be identified by their use of terms or phrases such as "expects," "estimates," "pro j ects," "believes," "anticipates," "plans," "intends," and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently sub j ect to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In this press release, the statement regarding expected compliance with financial covenants is a forward-looking statement. Please review the risk factors set forth in our Annual Report on Form 10-K and in our press releases, stockholder reports, and filings with the Securities Exchange Commission for factors that, could cause actual results to differ materially from those in the forward-looking statements. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information. SOURCE Covenant Transportation Group, Inc.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV