YRC Worldwide Inc. and its lenders have finalized another credit agreement amendment, signaling continued support of the trucking giant through financial losses.
Overland Park-based YRC wrapped up the agreement with JPMorgan Chase Bank N.A. and other lenders on Friday, according to a Monday filing with the Securities and Exchange Commission. The agreement maintains a $950 million credit facility for YRC and a senior loan of about $111.5 million, but it suspends until Oct. 13 a requirement that YRC always have liquidity of $100 million or more. It also puts off until Oct. 12 the prepayment of outstanding revolving loans from the proceeds of real estate asset sales; half of any prepayment will increase the revolver reserve amount.
On Aug. 31, the revolver reserve amount was about $100 million; it was not increased by the first $50 million of net cash YRC got from selling real estate since July 30.
The amendment also allows YRC to sell certain property for as much as $400 million in net cash proceeds.
Lenders had to rework credit agreements as a condition of the International Brotherhood of Teamsters’ acceptance of an extra 5 percent pay cut and forfeiting 18 months of pension payments. Most union workers agreed to the concessions early this month.
YRC reported a $309 million loss in the second quarter, coming on the heels of a $257.4 million first-quarter loss.
The company has taken steps that include selling property, integrating subsidiaries, closing facilities, laying off workers and repeatedly amending agreements with lenders in an attempt to maintain liquidity and ride out the recession.