Key Developments For Saia, Inc.
Saia, Inc. (SAIA.O) (Nasdaq)
Saia Inc. Amends Credit Agreements
Saia Inc. reported that it has amended its revolving credit and Senior Note facilities. The amendment to the Company's revolving credit facility includes the following: Provides relief of its leverage ratios and fixed charge coverage covenants through December 31, 2010; increases LIBOR spreads and letter of credit fees on outstanding obligations by approximately 200 basis points, depending on the applicable leverage ratio; provides for a pledge of certain real estate, rolling stock and other personal property to secure the facility; confirms its $160 million commitment, subject to a borrowing base, and its January 2013 maturity. In conjunction with the amendment to the revolving credit facility, the Company also amended its Senior Notes by modifying the financial covenants to match the relief provided in the revolving credit facility. Interest rates on the Senior Notes remain unchanged but are now subject to an increase if the noteholders are required by insurance regulations to increase reserves on the notes. The noteholders also share equally in the collateral provided under the revolving credit facility. The maturity of the notes remains unchanged.
Saia Inc. Cuts Work Force By 5% Across Field Operations And Corp Office-DJ
Dow Jones reported that Saia Inc. said that it cut its work force by about 5% across field operations and its corporate office.
Saia Inc. Announces Madison Freight Acquisition
Saia Inc. announced that it has acquired Madison Freight Systems, Inc. (MFS), a less-than-truckload carrier. The operations of MFS will be integrated into Saia's direct service in Wisconsin. The purchase price consideration of approximately $2.5 million is 3.0 times EBITDA. The integration is expected to be completed in March 2007.
Saia Inc. Announces Stock Repurchase Plan
Saia Inc. announced that its Board of Directors has authorized the repurchase of up to $25 million of its common stock. The Company shares may be repurchased from time to time in the open market at the Company's discretion, based on ongoing assessments of capital needs of the business, the market price of its stock, general market conditions and other factors.
Saia Inc. Announces Acquisition Of The Connection Company
Saia, Inc. announced that it has acquired The Connection Company a less-than- truckload carrier operating in four states. The purchase price consideration of approximately $17.5 million is four times EBITDA. Saia expects the acquisition to break even in 2007 due to a step-up in employee wages and benefits and investments in capital and be accretive in 2008. The related one-time costs are approximately $3.5 million.
