Loan & DebtJul 6, 2026, 04:47 PM
Landstar System Secures New $300M Revolving Credit Facility
AI Summary
Landstar System, Inc. and its subsidiary, Landstar System Holdings, Inc., entered into a Third Amended and Restated Credit Agreement on June 30, 2026. This agreement establishes a new $300 million revolving credit facility, with an additional uncommitted $500 million accordion feature, and has a termination date of June 30, 2031. The facility is unsecured and guaranteed by most of LSHI's subsidiaries, with specific provisions for foreign subsidiaries. It includes financial covenants such as minimum interest coverage and maximum net leverage ratios.
Key Highlights
- New revolving credit facility in an initial aggregate principal amount of $300 million.
- Uncommitted "accordion" feature permits up to an additional $500 million in increases.
- Revolving credit facility has a termination date of June 30, 2031.
- No outstanding borrowings under the Restated Credit Agreement as of June 30, 2026.
- Obligations are guaranteed by substantially all of LSHI’s subsidiaries and are unsecured.
- Contains financial condition covenants requiring minimum interest coverage ratio and maximum net leverage ratio.
- Event of default if a person or group acquires 35% or more of the Company's outstanding capital stock.
Price Impact
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