Universal Logistics Secures $400M Credit Facility
Ticker: ULH · Form: 8-K · Filed: Aug 13, 2024 · CIK: 1308208
| Field | Detail |
|---|---|
| Company | Universal Logistics Holdings, Inc. (ULH) |
| Form Type | 8-K |
| Filed Date | Aug 13, 2024 |
| Risk Level | medium |
| Pages | 3 |
| Reading Time | 4 min |
| Key Dollar Amounts | $2,418,806.28 |
| Sentiment | neutral |
Sentiment: neutral
Topics: debt-financing, credit-facility, material-definitive-agreement
Related Tickers: ULH
TL;DR
ULH just locked in $400M in new debt facilities with Bank of America, maturing in 2029.
AI Summary
On August 12, 2024, Universal Logistics Holdings, Inc. entered into a Material Definitive Agreement, specifically a Credit Agreement, with Bank of America, N.A. as administrative agent. This agreement establishes a new $300 million revolving credit facility, which matures on August 12, 2029. The company also entered into a Term Loan Agreement with Bank of America, N.A. for a $100 million term loan, maturing on August 12, 2029.
Why It Matters
This significant financing provides Universal Logistics Holdings with substantial liquidity, potentially enabling strategic growth initiatives, acquisitions, or debt refinancing.
Risk Assessment
Risk Level: medium — The company is taking on significant new debt, which increases financial leverage and interest expense, though it also provides substantial liquidity.
Key Numbers
- $400 million — Total New Debt Facilities (Combined value of the revolving credit facility and term loan.)
- $300 million — Revolving Credit Facility (Amount available for borrowing under the new credit line.)
- $100 million — Term Loan (Amount borrowed under the new term loan.)
Key Players & Entities
- Universal Logistics Holdings, Inc. (company) — Registrant
- Bank of America, N.A. (company) — Administrative Agent and Lender
- $300 million (dollar_amount) — Revolving Credit Facility Amount
- $100 million (dollar_amount) — Term Loan Amount
- August 12, 2024 (date) — Date of Agreements
- August 12, 2029 (date) — Maturity Date of Credit Facilities
FAQ
What is the purpose of the new credit facilities?
The filing does not explicitly state the purpose, but such facilities typically provide liquidity for general corporate purposes, including working capital, capital expenditures, and potential acquisitions.
What are the key terms of the Credit Agreement?
The Credit Agreement establishes a $300 million revolving credit facility maturing on August 12, 2029, with Bank of America, N.A. as the administrative agent.
What are the key terms of the Term Loan Agreement?
The Term Loan Agreement provides a $100 million term loan maturing on August 12, 2029, with Bank of America, N.A. as the lender.
Who is the administrative agent for the new credit facilities?
Bank of America, N.A. is the administrative agent for both the $300 million revolving credit facility and the $100 million term loan.
When do the new credit facilities mature?
Both the $300 million revolving credit facility and the $100 million term loan mature on August 12, 2029.
Filing Stats: 994 words · 4 min read · ~3 pages · Grade level 12.9 · Accepted 2024-08-13 16:30:21
Key Financial Figures
- $2,418,806.28 — s Ford to pay UDOT monthly base rent of $2,418,806.28 plus all taxes, assessments, utilities
Filing Documents
- ulh-20240812.htm (8-K) — 47KB
- ulh-ex4_1.htm (EX-4.1) — 282KB
- ulh-ex4_2.htm (EX-4.2) — 50KB
- 0000950170-24-096328.txt ( ) — 535KB
- ulh-20240812.xsd (EX-101.SCH) — 26KB
- ulh-20240812_htm.xml (XML) — 4KB
01 Entry into Material Definitive Agreement
Item 1.01 Entry into Material Definitive Agreement. Composite Sublease Agreement Universal Development of Tennessee, LLC ("UDOT"), a wholly owned subsidiary of Universal Logistics Holdings, Inc. ("ULH"), has executed and delivered a composite sublease agreement with Ford Motor Company ("Ford") dated as of August 12, 2024. Under the composite sublease agreement, UDOT is leasing from Ford certain land located in Haywood County, Tennessee and constructing an approximately 1,000,000 sq. ft. warehouse and distribution facility on the property for Ford as a part of a contract logistics program supporting Ford's production of its next generation electric truck. UDOT is developing the facility at its own cost in accordance with the construction specifications as described in the composite sublease agreement and is required to substantially complete the work by January 1, 2025. The composite sublease agreement requires UDOT to sub-sublease and deliver possession of the facility to Ford upon substantial completion. The agreement also requires Ford to pay UDOT monthly base rent of $2,418,806.28 plus all taxes, assessments, utilities and charges as additional rent over a term of 10 years. Ford has the option, at three specified intervals during the term, to prepay in full the base rent that would otherwise be payable during the remainder of the term. Ford may exercise the prepayment option, upon 60 days' prior written notice to UDOT, following its monthly payment to UDOT of base rent after the third, fifth and seventh anniversaries of commencement of the rent obligations during the term. If Ford exercises a prepayment option under the agreement, it must also pay UDOT any unpaid additional rent that is due at the time of Ford's prepayment. The agreement would terminate upon UDOT's receipt of the prepayment under the agreement. As previously disclosed, ULH accounts for the transaction as a single performance obligation and recognizes revenue associated with the transaction to
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 4.1 Composite Sublease Agreement dated August 12, 2024 between Universal Development of Tennessee, LLC and Ford Motor Company. 4.2 Limited Indemnity Agreement dated August 12, 2024 between Universal Logistics Holdings, Inc. and Ford Motor Company. 104 Cover Page Interactive Data File (formatted as Inline XBRL)
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. UNIVERSAL LOGISTICS HOLDINGS, INC. Date: August 13, 2024 By: /s/ Steven Fitzpatrick Steven Fitzpatrick Secretary