Loan & DebtMay 8, 2026, 04:27 PM
Knight-Swift Completes $1.5B Convertible Senior Notes Offering
AI Summary
Knight-Swift Transportation Holdings Inc. completed its private offering of $1.5 billion aggregate principal amount of 1.00% Convertible Senior Notes due 2031, including the full exercise of the initial purchasers' option. The notes, which are general senior unsecured obligations, will mature on November 15, 2031, and bear interest semiannually. The company expects to use the net proceeds to pay for capped call transactions, repay $300 million of its term loan due 2027, $400 million of its term loan due 2030, and a portion of its revolving line of credit. The initial conversion price is approximately $80.11 per share, representing a 30% premium over the common stock's closing price on May 5, 2026.
Key Highlights
- Completed private offering of $1.5 billion Convertible Senior Notes due 2031.
- Notes bear 1.00% interest, payable semiannually, maturing November 15, 2031.
- Initial conversion price of $80.11 per share, a 30% premium over May 5, 2026 price.
- Net proceeds to repay $300 million term loan due 2027.
- Net proceeds to repay $400 million of term loan due 2030.
- Net proceeds to repay a portion of revolving line of credit.
- Entered into capped call transactions for approximately $92.8 million.