The regional carrier company Saia Inc. has agreed to put up for sale as many as 2.3 million of its shares to institutional investors at a price which is 21% lower than the shares' current value, recorded on Monday at closing, as part of a deal which is required by lenders who are currently in the process of easing "covenant terms".

Also, the firm has said that it is expecting a fourth-quarter loss of about 30-36 cents a share, thereby painting a bleak picture of the future. Analysts recently polled by Thomson Reuters, however, have pegged a loss of about 12 cents per share.

As per the company, its forth-quarter earnings have been hit by higher expenses on healthcare, despite the fact that Saia had gone ahead with a 10% reduction in it staff.

Currently, the company has nearly 20 million shares, and is selling each share at $11.50.

"We believe the combination of equity raised from this offering and the covenant relief from our lenders should provide us with the flexibility to manage through a continued economic downturn and respond to industry consolidation", said President and Chief Executive Rick O'Dell.

The funds raised from the sale of the shares will go primarily towards repayment of principal and interest on senior notes.