YRC Worldwide Renews Asset-Backed Securitization Facility

YRC Worldwide Inc. today announced an amendment to renew its asset-backed securitization facility.

"We appreciate the continued support of our ABS lenders as demonstrated by the early renewal of this important 364-day accounts receivable borrowing facility," said Sheila Taylor, Executive Vice President and CFO of YRC Worldwide.

The amended ABS has a facility commitment of $325 million as compared to the company's usage of $195 million at September 30, 2010.

New maturity date is October 19, 2011, subject to ratification and the continued effectiveness of the company's previously announced tentative labor agreement.

Payment of previously deferred interest and fees of approximately $13 million was paid upon renewal.

Payment of the previously negotiated $10 million commitment fee is now payable in two installments of $5 million on March 1, 2011 and $5 million on April 30, 2011. An incremental commitment fee of $5 million is payable on June 30, 2011 for a total commitment fee of $15 million. In addition, the interest rate and letter of credit fee increase by 1%, and the program and administrative fees increase by 0.5%, both on April 30, 2011 and June 30, 2011.

Subsequent to October 20, 2010 the payment of most of the ABS interest and fees will continue to be deferred until March 1, 2011. At that date the estimated deferred amount of approximately $4 million would be payable to the lenders. After March 1, 2011, the company will begin to make cash payments of all ABS interest and fees.

If the company replaces the ABS facility prior to March 1, 2011, then payment of the above $15 million commitment fee and the accrued portion of the above estimated $4 million of deferred interest and fees will be waived. If the company replaces the ABS facility between March 1, 2011 and prior to April 30, 2011, then $10 million of the $15 million commitment fee will be waived, and if the ABS facility is replaced between April 30, 2011 and prior to June 30, 2011, then $5 million of the $15 million commitment fee will be waived.

"As part of our comprehensive recovery plan we intend to seek a replacement facility with an enhanced long-term structure designed to significantly increase our advance rate," said Taylor. "In the interim, our ABS lenders have provided the flexibility we need to support our current business levels with attractive refinancing incentives as we progress through 2011."

New Penn faces forced closure

If Teamsters nix restructuring, the South Lebanon trucking company may close.

New Penn Motor Express's parent company is threatening to close the South Lebanon Township trucking company if Teamsters don't approve a restructuring agreement next week.

"I am hopeful that this proposed Change of Operations ultimately will not be necessary," Jack Peak, YRC Worldwide's senior vice president of labor relations and employment law, wrote in an Oct. 14 letter to Teamsters officials, including Teamsters President James P. Hoffa. "If, however, the Restructuring Agreement is not ratified by New Penn's employees, it will be necessary to convene a special Change of Operations hearing immediately following the (Oct. 29) ratification vote count."

Peak wrote that YRC Worldwide companies "are at a critical juncture in the restructuring of their businesses and operations." Full Story.......

YRC hauls a full load of uncertainty

For the third time in less than two years, YRC Worldwide Inc. drivers and dock workers are about to decide the fate of the long-troubled trucking company.

Although workers have begrudgingly accepted cuts two previous times to keep YRC afloat, doubts linger about whether concessions will be accepted a third time, despite indications that they’re needed for YRC to survive.

The U.S. economy is not at its nadir as it was in 2009 when YRC workers accepted the previous cutbacks. But if the company has to liquidate now, the slow recovery won’t help YRC’s employees find new jobs, some analysts and industry executives said. Full Story.....

YRC Worldwide Provides Third Quarter Update

Positive third quarter 2010 adjusted EBITDA in excess of second quarter 2010

YRC Worldwide Inc. today provided an update on its expected third quarter results including:

For the third quarter of 2010, tonnage per day for YRC National and YRC Regional was 1.2% and 2.1%, respectively, higher than the tonnage per day for the second quarter of 2010. Revenue per shipment during the third quarter of 2010 for YRC National and YRC Regional was 1.9% and 3.7%, respectively, higher than the third quarter of 2009.

The company expects third quarter 2010 positive adjusted EBITDA within a range of $42 million to $46 million. For the second and third quarters of 2010, the company expects cumulative adjusted EBITDA within a range of $82 million to $86 million, which exceeds the $50 million covenant level required by its credit agreement. The company expects a third quarter 2010 operating loss within a range of $18 million to $22 million. As a comparison, the company reported an operating loss of approximately $35 million for the second quarter of 2010 when excluding an $83 million non-cash benefit from an adjustment to the fair value of the March 2010 union employee equity award.

At September 30, 2010, the company's estimated cash and cash equivalents were $115 million, restricted revolver reserves were $123 million, and unrestricted availability was $46 million, for a total of $284 million. During the third quarter of 2010 the company repaid $25 million of outstanding borrowings on its asset-backed securitization facility.

Third Quarter Earnings Call

The company will hold a conference call for the investment community on Friday, November 5, 2010, beginning at 9:30am ET, 8:30am CT. Third quarter earnings will be released the same day, Friday, November 5, 2010, prior to the opening of the market. The conference call will be open to listeners live and by recorded playback via the YRC Worldwide Internet site yrcw.com.