Swift pays $70 million debt at Q4, January end; ‘close’ to refinancing

By Devika Patel

Knoxville, Tenn., Jan. 27 – Swift Transportation Co. has paid off $47.3 million through a debt reduction in the fourth quarter and it also made a $22.5 million term loan prepayment in January.

“So this combined reduction of approximately $70 million will reduce our interest expense by roughly $1.6 million, or just under one cent per share,” chief financial officer, treasurer and executive vice president Virginia Henkels said on the company’s fourth quarter earnings conference call on Friday.

Henkels explained that the term loan prepayment was made to ensure that the company’s leverage ratios stayed within target levels.

“Given increased capital expenditures in the fourth quarter and EBITDA levels, cash was used primarily for debt reduction to keep the leverage ratio in line,” she said.

Henkels also said the company will continue look for ways to refinance and said Swift is “close” to having additional opportunities.

“We are always looking ahead to our next step in the evolution of our capital structure,” she said.

“We believe we are close to having additional opportunities to refinance we will continue to evaluate as we move forward.

Swift is a Phoenix-based transportation services company.

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