Transport Industries Holdings has secured a loan package from Wachovia Securities to fund four acquisitions. The deal consists of a five-year, $70 million revolver and a $280 million term loan, of which $235 million will be drawn at close and $45 million will be available through Dec. 31 or for an acquisition, whichever comes first, according to Standard & Poor's.
The rating agency assigned the loans a B+, citing a weaker financial profile than many of its competitors. "TI's debt leverage is appropriate for the current rating, with cash flow protection measures a relative strength. Financial flexibility is limited and the company currently does not have access to the public equity markets," S&P writes in its report. Fenway Partners has been involved with the company since 2000.
Based in Dallas, TI operates through three business units: Dedicated Transportation, which serves grocery and retail customers; Agent Network Transportation, which provides truck service to a wide range of customers; and Distribution Logistics, which provides warehouse management for customers in retail, commodities and food handling industries. It is the third leading provider of transportation services to the grocery industry and serves more than 40 customer-owned distribution centers throughout the U.S. and has more than 3,000 trucks.
Fenway Partners referred calls to Transport Industries and calls to Transport were not returned. A Wachovia banker declined comment.