American Commercial Lines
Inc. (ACL) has entered into a new $400m bank revolving credit facility led by Wells Fargo Bank as administrative agent. The revolver has a five year term, a variable interest rate based on LIBOR and varies with ACL's level of debt to EBITDA. The variable interest rate spread at closing was 62.5 basis points over LIBOR.
The new credit facility replaces the existing $250 million asset based facility that was entered into on February 11, 2005 and would have expired in February 2010. Under the new loan agreement, the Company has an option to increase the size of the credit facility up to an additional $200 million to a total facility size of $600 million.