US Xpress Enterprises Inc | $USX Stock | Company Plans To Raise Up To $100 Million In IPO

US Xpress Enterprises

US Xpress Enterprices (NYSE: USX)


Chattanooga, Tennessee-based U.S. Xpress Enterprises filed for an initial public offering with U.S. Securities & Exchange Commission (SEC) on May 7.

USX engages in the provision of freight haulage and logistics services to firms in need of a various transportation services.

The company intends to make 16,668,000 shares of its of its Class A common available to the public, according to a statement issued by the company on June 4.

Shareholders named in the company’s registration statement have also been given 1, 388,000 shares of Class A common to sell.

After more than 10 years of operating as a private company, the truckload carrier plans to list under the ticker symbol “USX”.

An official notice of issuance has already been availed to the company for its Class A common stock by SEC. Shares of the company are expected to start trading on June 14, 2018 on the New York Stock Exchange (NYSE).

The IPO’s price is expected to be in the range of between $18 to $20 a share. Reuters reported that US Xpress Enterprises was likely to raise close to $100 million, if the offering succeeds.

However, assuming the shares sell at the mid-point of the price range ($19) a piece, the estimated net proceeds will be approximately $292.7 million after deducting estimated unpaid expenses, and underwriting commissions and discounts payable by the company.

Morgan Stanley and BofA Merrill Lynch are acting as lead book-running managers for the offering.

Wells Fargo Securities and J.P. Morgan are acting as additional book-running managers. Wolfe Capital Markets and Advisory, Stifel, and Stephens Inc. will act as co-managers for the offering.

The company was established in 1986 by Pat Quinn and Max L. Fuller. The duo reclaimed the company in 2007 in a management-led buyout deal after making it public in 1994.

Currently, Fuller is its executive chairman, while his son William Eric Fuller is the president and chief executive officer. Quinn passed on in 2011.

The families of Quinn and Fuller own shares in the firm via their respective trusts. No known institutional investors own a stake of 5% or higher in the company.

In terms of revenue, U.S. Express Enterprises is the fifth largest truckload company in the United States. It primarily concentrates its services on the eastern part of the country.

The company owns and operates about 16, 000 trailers and 6,800 tractors for providing its services to clients.

USX faces competition from several other firms, including C.R. England Inc., CRST International, Swift Transportation, Crete Carrier, and Knight Transportation.

According to Renaissance Capital, U.S. Xpress had sales of $1.6 billion for the fiscal year ended March 31, 2018.

The company said it intends to use all the net proceeds of IPO to reduce existing indebtedness, including and about $14.1 million in amounts drawn under its securitization facility, $12.9 million in mortgage notes, and $20.7 in financing secured by trailers and tractors.

However, the company does not plan to receive any proceeds from the sale of shares by the selling stockholders.