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LONG-TERM DEBT
6 Months Ended
Jun. 30, 2022
Long-Term Debt, Current and Noncurrent [Abstract]  
LONG-TERM DEBT

NOTE 7 – LONG-TERM DEBT

Long-term debt consists of the following as of June 30, 2022 and December 31, 2021 (in millions):

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Term Loan Facility

 

$

395.0

 

 

$

397.0

 

ABL Facility

 

 

 

 

 

 

Equipment and real estate term loans

 

 

182.6

 

 

 

169.0

 

Finance lease liabilities

 

 

26.7

 

 

 

28.5

 

Total debt and finance lease liabilities

 

 

604.3

 

 

 

594.5

 

Less current portion

 

 

(60.4

)

 

 

(55.5

)

Less unamortized deferred financing fees

 

 

(7.0

)

 

 

(7.6

)

Long-term debt and finance lease liabilities, less current portion and unamortized deferred financing fees

 

$

536.9

 

 

$

531.4

 

 

Term Loan Facility

On March 9, 2021, the Company and Daseke Companies, Inc., a wholly-owned subsidiary of the Company (the Term Loan Borrower), entered into a Refinancing Amendment (Amendment No. 3 to Term Loan Agreement) (the Term Loan Amendment) with JPMorgan Chase Bank, N.A., as successor administrative agent and collateral agent and a replacement lender, Credit Suisse AG, Cayman Islands Branch, as predecessor administrative agent and collateral agent, the other loan parties party thereto and the other financial institutions party thereto. Pursuant to the Term Loan Amendment, the Company prepaid, refinanced and replaced all of the then-issued and outstanding term loans, which had an aggregate principal amount of $484 million, with cash on hand and new replacement terms loans in an aggregate principal amount of $400 million (the Replacement Term Loans). The Replacement Term Loans have a scheduled maturity date of March 9, 2028. At June 30, 2022 and December 31, 2021, the interest rate on the Replacement Term Loans was 5.6% and 4.75%, respectively. As of June 30, 2022, the Company was in compliance with all covenants contained in the agreement governing the Replacement Term Loans.

ABL Facility

The Company has a senior secured asset-based revolving line of credit (the ABL Facility) under a credit agreement (as amended, restated, supplemented or otherwise modified from time to time, the ABL Credit Agreement) with PNC Bank, National Association, as administrative agent and the lenders party thereto.

As of June 30, 2022, the Company had no borrowings, $23.3 million in letters of credit outstanding, and could incur approximately $125.3 million of additional indebtedness under the ABL Facility, based on current qualified collateral. As of June 30, 2022, the interest rate on the ABL Facility was 5.25%. As of June 30, 2022, the Company was in compliance with all covenants contained in the ABL Credit Agreement.

Equipment and Real Estate Term Loans

As of June 30, 2022, the Company had term loans collateralized by equipment in the aggregate amount of $180.3 million with 16 lenders (Equipment Term Loans). The Equipment Term Loans bear interest at rates ranging from 2.6% to 5.9%, require monthly payments of principal and interest and mature at various dates through July 2029. As of June 30, 2022, the weighted average interest rate was 4.1%.

 

As of June 30, 2022, the Company has a bank mortgage loan with a balance of $2.3 million incurred to finance the construction of the headquarters and terminal in Redmond, Oregon.