Transportation and Logistics Company

Company Overview

The Company provides nationwide transportation of automotive freight, focusing primarily on the dry van segment of the truckload market.  The Company also provides logistics, fulfillment and warehousing services.

The Company had just completed a refinancing of its revolving line of credit and was underperforming relative to its recent financial forecast.  Their operating losses and debt structure had put the Company in a severe liquidity crisis.

Engagement Overview

The Company had under- performed for the past few years, in terms of profitability and fleet utilization, and was overleveraged relative to its operating cash flows.

Due to its inability to meet forecasted results and other covenant violations, the senior lender had increased interest rates and was reducing collateral availability. Debt with other lenders was also in various stages of default.

Fort Dearborn identified specific opportunities and assisted in the immediate implementation of several profit improvement actions including: Eliminating unprofitable contracts to increase linehaul rates per mile; reducing tractor maintenance costs through improved fleet management; developing a fleet reduction plan; reducing the number of terminals and repair facilities; and reducing various other operating costs.

Fort Dearborn also worked with management to develop short and long-term strategic plans and upgrade their management team.

Based upon the improvement in performance, Fort Dearborn assisted the Company in refinancing its senior credit facility and other debt agreements resulting in the closing of a $35 million new loan facility.

The new lending arrangements provide for additional growth capital, reduced borrowing costs dramatically, reduced collateral monitoring and reporting requirements and reduced the number of lenders from fifteen to three.


•  Fort Dearborn acted as exclusive financial advisor to the Company for their refinancing

•  Reduced the Company’s cost of capital and dramatically improved borrowing availability

•  Consolidated multiple bank notes payable and significantly reduced the number of lenders providing debt to the Company

•  Provided for a multi-bank loan facility which allows the Company to properly fund its growth and capital expenditure needs and allows management to purchase and dispose of assets based upon operational considerations instead of debt maturity