SunTrust Bank and Credit Suisse First Boston are leading a $300 million facility for Overnite Transportation Co., a Richmond, Va.-based less-than-truckload hauling company that announced its spin-off from parent Union Pacific Corp. in August. CSFB and Morgan Stanley will underwrite the company's proposed IPO. The credit, which will be pitched at a Sept. 22 bank meeting, will include a $175 million revolver and a $125 million term loan, with five-year tenors.
Pricing is based on the facility's credit ratings. Standard & Poor's has given a triple-B rating to the facility, which would put pricing in the LIBOR plus 1% range. Pricing is also dependent on a Moody's Investors Service rating of Baa2, according to a banker. In June, Overnite received a $13.15 million revolver priced at LIBOR plus 7/8% from SunTrust. According to S&P, consolidations among larger freight carriers and closings of smaller companies in the industry have funneled business to Overnite. A CSFB banker did not return calls. A SunTrust banker confirmed the bank is co-leading the deal. An Overnite spokesman declined comment.