Western Express and Smithway Motor Xpress Announce Delay of Closing Date for Acquisition
31 August 2007 - 9:00AM
PR Newswire (US)
NASHVILLE, Tenn. and FORT DODGE, Iowa, Aug. 30
/PRNewswire-FirstCall/ -- Western Express, Inc. and Smithway Motor
Xpress Corp. (NASDAQ:SMXC), today announced a delay in the closing
under the previously announced merger agreement for Western to
acquire Smithway. The delay has been caused by recent volatility in
U.S. credit markets. The parties have been working to finalize the
debt financing required to close the acquisition. On August 30,
2007, Western received a revised commitment letter from JP Morgan
Chase Bank, N.A. and its affiliates, subject to customary
conditions, extending the commitment to October 31, 2007. In order
to accommodate this financing, the merger agreement has been
amended to extend the expiration date to October 31, 2007. Western
and Smithway believe that the financing and the acquisition can be
finalized and closed before that date. About Smithway Smithway is a
truckload carrier that hauls diversified freight nationwide,
concentrating primarily on the flatbed segment of the truckload
market. Its Class A Common Stock is traded on the Nasdaq Capital
Market under the symbol "SMXC." About Western Western is a rapidly
growing truckload carrier with a history of strategic acquisitions.
This press release and statements made by Smithway in its
stockholder reports and public filings, as well as oral public
statements by Smithway representatives, may contain certain
forward-looking information, usually identified by words such as
"anticipates," "believes," "estimates," "projects," "plans,"
"expects," or similar expressions. These statements are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements are based upon the
current beliefs and expectations of Smithway's management and are
subject to significant risks and uncertainties. Actual results may
differ from those set forth in forward-looking statements. The
following factors, among others, could cause actual results to
differ materially from those in forward-looking statements: failure
of the proposed acquisition of Smithway to close on a timely basis
or at all as a result of continued volatility in U.S. credit
markets and the inability to obtain required financing or as a
result of unsatisfied closing conditions or other factors; failure
to sustain operating profitability, which could result in violation
of bank covenants and acceleration of indebtedness at several
financial institutions; the ability to obtain financing on
acceptable terms, and obtain waivers and amendments to current
financing in the event of default; economic recessions or downturns
in customers' business cycles; excessive increases in capacity
within truckload markets; surplus inventories; decreased demand for
transportation services offered by Smithway; increases or rapid
fluctuations in inflation, interest rates, fuel prices, and fuel
hedging; the availability and costs of attracting and retaining
qualified drivers and owner-operators; increases in insurance
premiums and deductible amounts, or changes in excess coverage,
relating to accident, cargo, workers' compensation, health, and
other claims; the resale value of used equipment and prices of new
equipment; seasonal factors such as harsh weather conditions that
increase operating costs; regulatory requirements that increase
costs and decrease efficiency, including emissions standards and
hours-of-service regulations; changes in management; and the
ability to negotiate, consummate, and integrate acquisitions.
Readers should review and consider the various disclosures made by
Smithway in this press release, stockholder reports, and in its
Forms 10-K, 10-Q, and other public filings. Smithway disclaims any
obligation to update or alter its forward- looking statements
whether as a result of new information, future events, or
otherwise. DATASOURCE: Smithway Motor Xpress Corp. CONTACT: Rick
Prickett, Chief Financial Officer of Western Express, Inc.,
+1-615-259-9920, or Larry Owens, President and Chief Executive
Officer of Smithway Motor Xpress Corp., +1-515-576-7418 Web site:
http://www.smxinc.com/
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