-- Completes Initial Closing with Proceeds of $33.6 Million
-- YRCW Customers Will Continue to Receive Complementary Logistic Services through Austin Ventures
YRC Worldwide Inc. today announced that it completed the initial closing on the previously announced sale of a portion of YRC Logistics. The gross proceeds for the transaction were approximately $38.7 million of which YRC Worldwide received $33.6 million at the initial closing with an additional $2.3 million placed in escrow for further closings of foreign entities over the coming months, and $2.8 million was placed in escrow for indemnification purposes.
All of the multiemployer pension funds that are parties to the company's pension contribution deferral agreement ("CDA") agreed to amend the CDA. The CDA amendment provides for certain terms in the company's most recent amendment to its credit agreement to be effective, including the retention of 100% of the proceeds from the sale of YRC Logistics.
YRC Worldwide will retain its two China-based joint ventures. The company will continue to offer its customers complementary logistics solutions through its strategic relationship with Austin Ventures, which is created by a comprehensive commercial services agreement between the parties.