Pacer refinances long-term debt
Concord, Calif.-based third-party logistics provider Pacer International Inc. has refinanced its existing long-term debt, which it estimates will reduce its pre-tax annualized financing costs by about $1.5 million.
Pacer has entered into a new senior $250 million, five-year revolving credit facility with a syndicate of financial institutions led by the Bank of America N.A.
Pacer has utilized about $59 million of the new credit facility to repay the balance due under the existing bank credit facility, which was terminated. Borrowing under the new facility will be used for the recently announced share purchase authorization, acquisitions, and for working capital and general corporate purposes of the company and its subsidiaries, said Mike Uremovich, Pacer’s chairman and chief executive officer.
As a result of the termination of the prior credit facility, Pacer will incur a one-time pre-tax, non-cash charge in the first fiscal quarter of 2007 of $1.8 million, related to the write-off of unamortized debt costs.
Pacer refinances long-term debt
