Frozen Food Express Industries Inc has closed a three-year, $40-million revolving credit facility. The new agreement replaces a $33.3-million facility which was to expire June 1, 2002. The company was using about $13.5 million of its available credit as of March 31, 2002.
Borrowings under the new agreement are secured by the company's accounts receivable. In addition, the company has the option to provide the banks with liens on a portion of its truck and trailer fleet to cover borrowings and letters of credit in excess of the amount that can be borrowed against accounts receivable. Borrowings under the old credit facility were secured by the company's accounts receivable, inventories, and all of its trucks and trailers.
The new agreement is led by Comerica Bank-Texas as administrative agent. LaSalle Bank NA Chicago is an equal participant with Comerica and will act as the collateral agent.
