BofA warns Fed risks policy mistake with early rate cuts
Knight-Swift Transportation Holdings Inc. (NYSE:KNX), currently trading at $47.29 and valued at $7.66 billion by market capitalization, entered into a new $2.5 billion unsecured credit facility on July 8, replacing its previous $2.3 billion credit agreement and a $250 million term loan, according to a press release statement filed with the SEC. InvestingPro analysis indicates the stock is trading near its Fair Value, with detailed valuation metrics available in the comprehensive Pro Research Report, part of the coverage of 1,400+ US equities.
The new 2025 debt agreement includes a $1.5 billion revolving line of credit, with $672 million drawn at closing and a maturity date of July 8, 2030. It also features a $700 million term loan maturing on July 8, 2030, and a $300 million term loan maturing on January 8, 2027. With total debt standing at $3.21 billion and a current ratio of 0.88, InvestingPro data shows the company’s short-term obligations currently exceed its liquid assets. No scheduled principal payments are required on the revolving credit or the $300 million term loan until their respective maturity dates. The $700 million term loan will require equal quarterly principal payments of $8.8 million starting September 30, 2028, with the remaining balance due at maturity.
Interest rates for the new facility are tied to the Secured Overnight Financing Rate (SOFR), plus a margin based on leverage. As of the closing date, the rate was SOFR plus 1.55% for the revolving credit and $700 million term loan, and SOFR plus 1.425% for the $300 million term loan.
Proceeds from the new loans, along with $8.4 million in cash, were used to pay off the outstanding balances and accrued interest under the previous $2.3 billion credit agreement and $250 million term loan, as well as transaction fees. The prior agreements included a $1.1 billion revolving credit facility, $800 million and $350 million term loans, and were scheduled to mature on September 3, 2026.
The terms of the new agreement are substantially similar to the previous arrangement, including covenants related to leverage, interest coverage, and restrictions on dividends, liens, affiliate transactions, and other indebtedness.
This information is based on a press release statement included in Knight-Swift’s recent SEC filing.
In other recent news, Knight Transportation has been the focus of several analyst updates and corporate developments. Goldman Sachs upgraded Knight Transportation to a Buy rating, raising the price target to $65, based on a revised valuation and positive earnings potential. Citi also increased its price target to $53 while maintaining a Buy rating, highlighting the company’s favorable position to benefit from tightening freight market conditions. UBS kept its Buy rating with a $46 target, expressing confidence in Knight Transportation’s ability to capitalize on anticipated market improvements in the truckload sector.
Benchmark reiterated its Buy rating with a $55 target, noting that Knight Transportation is well-positioned to benefit from stable freight volumes and potential margin improvements. In corporate governance, Knight-Swift Transportation Holdings Inc., the parent company, held its Annual Meeting of Stockholders, where all directors were reelected, and executive compensation was approved, reflecting shareholder satisfaction. The shareholders also ratified the appointment of Grant Thornton LLP as the company’s independent auditor for 2025.
However, a proposal for transparency in political spending did not pass. The company’s management has indicated a balanced state in the truckload market, with regional variances in demand. Investors are likely to monitor how Knight Transportation navigates these dynamics while leveraging opportunities in the evolving freight market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.