UPDATE: Bank of America Reiterates On Swift Transportation On Moves To Refinance Debt

In a report published Thursday, Bank of America analyst Ken Hoexter reiterated a Buy rating on

, and raised the price target from $30.00 to $31.00. In the report, Bank of America noted, “Swift launched a bid to refinance $1.09 billion of its $1.53 billion debt outstanding. We believe the move will lower its average weighted cost of debt by 200 bps, to 4.15% from 6.1%, saving it $30 million in annual interest expense ($10 million better we previously estimated). This move would be $0.13/sh accretive in total, $0.05 better than we previously estimated, as it accelerated the term loan refinancing ahead of our estimate and at potentially better rates than we had expected. "Based on management's stated $30 million annual savings target, we believe the refinancing will be completed at sub-4% rates (Libor plus 350 bps in our estimate).” Swift Transportation closed on Wednesday at $24.33.