SOURCE: Swift Transportation

July 06, 2007 17:30 ET

Swift Transportation Enters Into Accounts Receivable Securitization Agreement

PHOENIX, AZ--(Marketwire - July 6, 2007) - Swift Corporation today announced that it has caused its wholly owned subsidiaries, Swift Transportation Corporation and Swift Receivables Corporation, to enter into an agreement with an unrelated financial entity (the "Purchaser") to sell, on a revolving basis, interests in Swift Corporation's consolidated accounts receivable. Under the agreement, the Purchaser may invest up to $200 million at any one time to purchase accounts receivable, with collections on such accounts receivable applied to reduce the Purchaser's aggregate outstanding investment. Swift will incur a funding charge based on commercial paper rates on amounts invested by the Purchaser, and interest will accrue on the outstanding balance of the Purchaser's investment, based on Swift's election, at either a Prime Rate or Eurodollar Rate. Proceeds received by Swift from the sale of accounts receivable will be used to pay down its existing term loan. It is estimated that a reduction in the outstanding principal balance of Swift's term loan of $200 million will reduce Swift's annual interest expense by approximately $5 million.

Current holders of Swift's term loan may obtain additional information on the accounts receivable securitization facility from Morgan Stanley Senior Funding. Current holders of Swift's Senior Secured Notes may obtain more information from the Trustee.

Swift Corporation is the holding company for Swift Transportation Co., Inc., a truckload carrier headquartered in Phoenix, Arizona. Swift's trucking subsidiary operates the largest fleet of truckload carrier equipment in the United States consisting of 18,000 tractors, 49,000 trailers and 5,000 intermodal containers. Operating out of 31 major terminals in 26 states and Mexico, Swift provides strong regional operations, an expanding intermodal operation and various specialty and dedicated services to its customers while focusing on safety and service, through its 25,000 employees and independent contractors.

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