Saia, Inc. (SAIA) signed an agreement to sell 2.31 million shares of common stock at a price of $11.50 per share to a group of institutional investors. The company will receive $25.1 million in net proceeds, which will be used pay down outstanding debt.
Saia, Inc. also amended its credit agreement with its lenders to waive compliance with certain of its debt covenants. The amendments permit non-compliance with certain leverage and fixed charge covenants through March 31, 2011. Saia, Inc. agreed to the following conditions in return for this waiver:
• The interest rate on an outstanding senior note issue is increased to 9.75% from 6.8% until June 30, 2011.
• The company will prepay $24.5 million on that senior note issue, which represents all principal and interest due in 2010.
• A reduction in borrowing capacity under its credit agreement to $120 million from $160 million.
Saia, Inc. is a Less Than Truckload (LTL) carrier providing regional transportation services in 34 states. The company earned $3.2 million in net income, or $0.24 per diluted share, in the third quarter of 2009. Revenues were $222 million for the quarter, a decline of 19% year over year.
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