NASHVILLE, Tenn. and FORT DODGE, Iowa, Aug. 30 -- 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.
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."
Western is a rapidly growing truckload carrier with a history of strategic acquisitions.
Source: 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/