U.S. Xpress Enterprises filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering. The company expects to sell its 18.06 million shares for $18 to $20 apiece, with an overallotment option for an additional 2.71 million shares. At the maximum price, the entire offering is valued up to $415.29 million. The company intends to list its shares on the NYSE under the symbol USX.
The underwriters for the offering are Merrill Lynch, Morgan Stanley, JPMorgan, Wells Fargo, Stephens, Stifel, and Wolfe Capital.
This is the fifth largest asset-based truckload carrier in the United States by revenue, generating over $1.5 billion in total operating revenue in 2017. The firm provides services primarily throughout the United States, with a focus in the densely populated and economically diverse eastern half of the United States.
U.S. Xpress offer customers a broad portfolio of services using its own truckload fleet and third-party carriers through a non-asset-based truck brokerage network. As of March 31, 2018, its fleet consisted of roughly 6,800 tractors and approximately 16,000 trailers, including about 1,300 tractors provided by independent contractors. All of its tractors have been equipped with electronic logs since 2012, and its systems and network are engineered for compliance with the recent federal electronic log mandate. The terminal network and information technology infrastructure are established and capable of handling significantly larger volumes without meaningful additional investment.
The company intends to use the net proceeds from the offering to repay its debt as well as for working capital and general corporate purposes.