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.
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