Trucking company Saia changes debt rules

Trucking company Saia said Monday that it has amended its revolving credit facility and senior note facilities.

The Johns Creek, Ga.-based company said the changes would provide Saia with financial flexibility to manage its freight business through the recession.

Amendments to Saia's revolving credit facility adjust the company's leverage ratios and fixed charge covenants through December 31, 2010. Saia also increased its LIBOR spread and credit fees on outstanding obligations by 2 percentage points and will be able to use real estate, stock and other property to secure the credit facility.

The company modified the financial covenants of its senior notes. Although interest rates of the notes remain unchanged, they are subject to an increase if insurance regulations require noteholders to increase reserves on the notes.

Saia had $116.3 million in total debt as of March 31, with no borrowings from its revolving credit line. It had $53.7 million in letters of credit outstanding. Saia paid $1.4 million in fees to lenders and noteholders under terms of the amendments. The company had $12 million cash on hand at the end of the quarter.

Shares of Saia fell $1.01, or 5.3 percent, to $17.97 in morning trading.