Key Equipment Finance Provides $83.6MM Financing to LGSI
DEC 31, 2015 - 6:48 am
According to a related 8-K filing, LGSI Equipment of Indiana, a wholly owned subsidiary of Universal Truckload Services, entered into a master security agreement and five promissory notes (equipment credit agreement) with Key Equipment Finance.
Under the agreement, LGSI borrowed approximately $83.6 million. The promissory notes will be repaid in 60 monthly installments, including interest, beginning on January 23, 2016 and bear interest at a fixed rate of 3.75%.
As security, KeyBank was granted liens on selected titled vehicles. Additionally, all obligations under the agreement are guaranteed by Universal Dedicated, Logistics Insight, Universal Truckload, Universal Specialized and Mason Dixon Intermodal (each a wholly-owned subsidiary of Universal Truckload Services) in connection with each subsidiaries lease of equipment.
The agreement also includes financial covenants requiring LGSI to maintain a debt service coverage ratio of not less than 1.1:1.
Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!
Monitor’s fourth annual women in equipment finance list highlights notable women within the industry that have been nominated by our readers and hand-selected by Monitor’s staff and editorial board. Here are this year’s honorees: Maryellen Barbarish Mithu Bhargava Hollis Bufferd... read more
Our industry can and will benefit from having more women in leadership positions. Spaces that are inclusive of people from various backgrounds — gender, ethnicity, etc. — naturally culminate in a broader set of ideas, which gives companies more options... read more