Roadrunner Transportation Systems Moves Away from Lines of Credit for Organic Growth
Thursday, Sep 28 2017 Staff Writer
Roadrunner Transportation Systems is a trucking company and logistics provider. They recently announced that they have closed a lending facility worth $292 million. What does this mean for this trucking company? Headquartered in Milwaukee, Wisconsin, Roadrunner Transportation is getting away from depending on collateral-backed lines of credit to finance its equipment line. Instead, the company is pushing forward with organic growth that will better balance its current operating levels. Learn more about what this is all about and how you can find a trucking job at Roadrunner.
Selling Its Asset-Based Facility
Roadrunner Transportation System closed an asset-based lending facility (ABL). An asset-based lending facility is equivalent to a loan backed by collateral that includes a line of credit. This ABL is handled by Wells Fargo Capital Finance, JP Morgan Chase, and BMO Harris Bank. The ABL provided Roadrunner with:
- $200 million as a revolving account for handling accounts receivable
- $57 million in a term loan for purchasing transportation equipment
- $35 million as a deferred draw term loan that was used to finance transportation equipment
The money within this ABL was also used for working capital and included in shares of Roadrunner stock.
By closing this five-year grouping of lines of credit, Roadrunner Transportation reps noted, “As planned, we have successfully closed on a new ABL facility, which completes the last key step in our recapitalization. We now have the financing and capital in place to support our current business levels and organic growth over the next five years.” So, what does this mean?
Roadrunner Goes for Financial Independence
By selling this ABL, Roadrunner is on the desired path to move toward being self-reliant financially. This will help the trucking company grow without depending on the financial gains of an ABL. It will also aid Roadrunner in being more sufficient at the current level. For many companies looking to grow financially, they will seek out investors for capital, which can help a company boom more rapidly. However, there is danger in the fluctuations of the market and economy that could result in a company being unable to pay back investors, resulting in dramatic loss.
Moving away from the asset-based lending facility will hopefully give Roadrunner Transportation Systems the ability to grow even more without the need of financial investors. This is a positive sign that this trucking carrier is on the upswing. Additionally, Roadrunner is no longer putting its trucking equipment up for collateral on these lines of credit. This shows a confidence that the company is able to finance itself without dependence, cost, and risk associated with lines of credit.
Truck Driving Jobs at Roadrunner Transportation
Roadrunner Transportation’s move toward being more financially independent is a great indicator that the company is stable and growing. It is also a perfect time to choose a trucking job at Roadrunner. So, what do you need to get started?
First of all, it’s important to understand that Roadrunner is not just a single trucking company. Instead, it is a transportation organization with at least 20 operations. For trucking jobs, these include:
- Roadrunner Temperature Controlled
- Roadrunner Freight LTL Linehaul
- Big Rock Transportation for refrigerated and flatbed trucking jobs
- Roadrunner Carriers for dedicated and OTR trucking jobs
- Roadrunner Freight LTL Local
- CTW Transport for refrigerated hauling jobs
- Roadrunner Truckload Plus
- EFS for local and regional LTL
- Roadrunner Expedite
- Roadrunner Intermodal Services including port freight
- D&E Transport for flatbed hauling jobs
- Stagecoach Cartage and Distribution for local and truckload trucking jobs
- Rich Logistics for truckload and expedited trucking jobs
- ISI Logistics for local and expedited freight jobs
Your first mission is to choose a trucking operation that meets your trucking experience and job expectations. All of these companies under the Roadrunner group hire:
- Owner operators
- Lease purchase truck drivers
- Company truck drivers
As an owner operator, you can earn up to $225,000 a year as a solo OO. Team-driving owner operators can make up to $350,000. If you choose to lease purchase with Roadrunner, you don’t have to pay any money down. Late model equipment is provided in this truck leasing program. Additionally, you can pay low weekly payments with Roadrunner leasing. Company drivers for Roadrunner earn up to $1,200 a week. You are given consistent freight loads and newer trucking equipment in this trucking job.
Determine which trucking route you want to take and apply to Roadrunner today.
Source: Roadrunner Transportation Systems - News
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